Arena Resources "buy," target price raised

06/10/08 - Dahlman Rose

NEW YORK, June 10 (newratings.com) - Analysts at Dahlman Rose maintain their "buy" rating on Arena Resources Inc (ARD). The target price has been raised from $60 to $70.

In a research note published yesterday, the analysts mention that the company’s Fuhrman-Mascho rig is expected to provide significant growth potential going forward. Arena Resources is likely to post its 2Q08 EPS at $0.56, representing growth from $0.24 in the year-ago period on account of a rise in oil prices, the improbability of unfavourable weather conditions and the efficiency of rigs, the analysts add. The Yates Gas play is expected to significantly bolster the company’s returns in 2009, Dahlman Rose says.