New Source Energy Partners Stock Rating Reaffirmed by Wunderlich (NSLP)
New Source Energy Partners (NASDAQ:NSLP)‘s stock had its “buy” rating restated by equities researchers at Wunderlich in a research report issued on Friday. They currently have a $28.00 target price on the stock, up from their previous target price of $25.00. Wunderlich’s price target points to a potential upside of 19.40% from the stock’s previous close.
The analysts wrote, “New Source Energy Partners L.P. (NSLP) announced yesterday after the close that it has acquired Erick Flowback Services (EFS) and Rod’s Production Services (RPS), both based in Oklahoma, for a total purchase price of $116.8 million, consisting of $57.3 million from cash contribution, $42.7 million from the Partnership’s common units, and $16.8 million of debt. “The former owners are also entitled to earn additional consideration in the second quarter of 2015. Based on our estimates, the additional consideration is around $20mm, netting the total acquisition cost to $137mm. The company expects around $32mm of EBITDA in 2014 (annualized) implying a multiple of 4.3x. Incorporating the new acquisition to our model drives up our price target to $28, up from $25.”
New Source Energy Partners (NASDAQ:NSLP) traded up 0.21% during mid-day trading on Friday, hitting $23.50. 20,430 shares of the company’s stock traded hands. New Source Energy Partners has a one year low of $19.61 and a one year high of $25.70. The stock’s 50-day moving average is $23.07 and its 200-day moving average is $23.40. The company has a market cap of $370.0 million and a price-to-earnings ratio of 9.29.
New Source Energy Partners (NASDAQ:NSLP) last posted its quarterly earnings results on Wednesday, May 14th. The company reported $0.12 earnings per share for the quarter, missing the analysts’ consensus estimate of $0.37 by $0.25. On average, analysts predict that New Source Energy Partners will post $1.03 earnings per share for the current fiscal year.
A number of other analysts have also recently weighed in on NSLP. Analysts at Zacks upgraded shares of New Source Energy Partners from a “neutral” rating to an “outperform” rating in a research note on Monday, May 19th. They now have a $27.60 price target on the stock. Separately, analysts at Citigroup Inc. upgraded shares of New Source Energy Partners from a “neutral” rating to an “outperform” rating in a research note on Thursday, May 8th. They now have a $25.00 price target on the stock. Finally, analysts at Robert W. Baird upgraded shares of New Source Energy Partners from a “neutral” rating to an “outperform” rating in a research note on Thursday, May 8th. They now have a $25.00 price target on the stock. One analyst has rated the stock with a hold rating and four have given a buy rating to the stock. New Source Energy Partners currently has an average rating of “Buy” and a consensus price target of $26.12.
New Source Energy Partners L.P. is engaged in the acquiring oil and natural gas properties in the United States.
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