Intel stock spikes after report of possible US government stake
Investing.com - Citi has raised its price target on Northern Oil and Gas (NYSE:NOG) to $38.00 from $34.00 while maintaining a Buy rating on the stock. The company, currently trading at an attractive P/E ratio of 4.7x and EV/EBITDA of 3x, offers a compelling 5.8% dividend yield. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value model.
The firm updated its model with revised estimates ahead of earnings, projecting discretionary cash flow of approximately $321 million, which falls slightly below the VisibleAlpha consensus of around $340 million.
Citi sees production and capital spending tracking to the mid-point of guidance for the year, while expecting realizations to have come in slightly better than initial estimates.
The firm anticipates investor focus will be on Northern Oil and Gas’s capital cadence through the year given macroeconomic uncertainty, along with strong interest in the outlook for both ground game transactions and larger M&A deals.
Citi maintains its Buy/High Risk rating while increasing the target price based on the company’s operational diversification, which provides "somewhat of a natural hedge to ongoing macroeconomic uncertainty" and the expected incremental improvement in its production profile.
In other recent news, Northern Oil & Gas reported impressive financial results for the first quarter of 2025. The company exceeded earnings expectations, posting an earnings per share (EPS) of $1.33 compared to the forecasted $1.11, and generated revenue of $602.1 million, surpassing the anticipated $559.59 million. Raymond (NSE:RYMD) James responded by raising its price target for Northern Oil & Gas from $35 to $36 while maintaining a Strong Buy rating, citing the company’s strong operational performance. In another development, Northern Oil & Gas announced an increase in its credit facility, raising its elected commitment amount to $1.6 billion, which is expected to enhance its financial flexibility. Additionally, the company’s annual meeting results revealed the election of eight directors and the ratification of Deloitte & Touche LLP as its independent auditor. The stockholders also approved executive compensation in a nonbinding advisory vote. These updates reflect Northern Oil & Gas’s strategic focus on financial stability and growth opportunities amidst a volatile market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.