Magnolia Oil & Gas rises after Siebert Williams Shanks raises PT

Magnolia Oil & Gas

06/09/2023 15:06

** Brokerage Siebert Williams Shank raises PT for Magnolia
Oil & Gas  MGY.N  to $32 from $30, reaffirms "buy" rating
    ** MGY shares up 2.7% at $23.96 in morning trade
    ** Brokerage says it believes MGY deserves the premium
valuation due to its above average Free Cash Flow (FCF) yield
and capital returns, as well as strong underleveraged balance
sheet
    ** MGY on Tuesday said it would acquire certain oil and gas
assets in Giddings for $300 mln
    ** Brokerage says the assets will provide high cash
operating margins through access to premium Gulf Coast, pricing 
and low per‐unit operating costs
    ** Siebert Williams Shank's new price target represents a
37.2% upside to the stock's last close
    ** 9 of 15 brokerages rate the stock "buy" or higher and 6
"hold"; their median PT is $26
    ** Up to last close, shares have risen 0.2% YTD

 (Reporting by Tanay Dhumal in Bengaluru)
 ((Tanay.Dhumal@thomsonreuters.com; 
Twitter: https://twitter.com/TanayDhumal))