Arena Resources "buy," target price raised

05/06/08 - Ladenburg Thalmann

NEW YORK, May 6 (newratings.com) - Analyst Noel A Parks of Ladenburg Thalmann reiterates his "buy" rating on Arena Resources Inc (ARD), while raising his estimates for the company. The target price has been raised from $43 to $52.

In a research note published yesterday, the analyst mentions that the company continues to expand its acreage via bolt-on acquisitions. Arena Resources has significant reserve potential and there is high visibility into its production going forward on account of the low-risk infill drilling at Fuhrman-Mascho, the analyst says. The EPS estimate for 2008 has been raised from $1.00 to $1.05 to reflect higher crude oil and natural gas price assumptions.