NewsMDU Resources "buy," target price raised
06/06/08 - D.A. Davidson & Co.
NEW YORK, June 6 (newratings.com) - Analyst James L Bellessa of DA Davidson maintains his "buy" rating on MDU Resources Inc (MDU), while raising his estimates for the company. The target price has been raised from $35 to $40.
In a research note published this morning, the analyst mentions that the average realized energy price per Mcfe estimates for the company for 2008 and 2009 have been raised by 5% to $8.53 and by 7% to $8.56, respectively. The upward revision in the target price reflects higher earnings potential and the prospects of MDU Resources’ production and exploration exposure to the Bakken Formation in North Dakota, the analyst adds. The EPS estimates for 2008 and 2009 have been raised from $2.03 to $2.13 and from $2.26 to $2.41, respectively.