Arena Resources "strong buy," target price reduced

06/10/08 - Capital One Southcoast

NEW YORK, June 10 (newratings.com) - Analysts at Capital One Southcoast maintain their "strong buy" rating on Arena Resources Inc (ARD). The target price has been reduced from $69 to $68.

In a research note published this morning, the analysts mention that the company completed its stock issuance of 2.5 million common shares on June 3. The start-up of the Yates gas production is now expected in March 2009, as compared to the previous expectation of January 2009, the analysts say. The realized price estimate for the Yates gas production has been reduced by approximately 10%.