Deutsche Bank Upgrades Whiting Petroleum (WLL) to Buy

Deutsche Bank upgraded Whiting Petroleum (NYSE: WLL) from Hold to Buy with a price target of $43.00 (from $38.00). Analyt Josh Silverstein noted underperformance vs peers and he thinks its position in the DJ Basin is undervalued.

"While the Permian and Anadarko Basins remain our preferred basin for oil exposure, the 3-4x multiple gap (2016 EV/DACF) at WLL vs. oil growth peers provides an opportunity for management execution to narrow the gap and investors upside to an improving oil outlook. Additionally, WLL has underperformed OAS (closest Bakken peer) by ~25% over the past three months despite showing similar strong Williston Basin productivity trends in 1Q, a larger base of quality inventory to drive better capital efficiency (via the KOG acquisition), and holding more levers to de-risk the balance sheet, providing flexibility to accelerate growth heading into 2016. We also view the ~135k net acre Redtail position in the DJ Basin as undervalued in the WLL portfolio, with the ability to deliver volume growth better than offsetting peers due to the increased in-house infrastructure additions," said Silverstein.

For an analyst ratings summary and ratings history on Whiting Petroleum click here. For more ratings news on Whiting Petroleum click here.

Shares of Whiting Petroleum closed at $33.37 yesterday.

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