Callon Petroleum Company( CPE:NYE) JP Morgan lowers the target price to $68

STA Research
by: STA Research
Callon Petroleum Company

JP Morgan maintains Callon Petroleum Company with an Underweight rating and lowers the target price to $68 from $75 on the company’s stock.

Based on the Callon Petroleum Company stock forecasts from 5 analysts, the average analyst target price for Callon Petroleum Company is USD 81.44 over the next 12 months. Callon Petroleum Company’s average analyst rating is Hold . Stock Target Advisor’s own stock analysis of Callon Petroleum Company is Bullish , which is based on 7 positive signals and 3 negative signals. At the last closing, Callon Petroleum Company’s stock price was USD 35.89Callon Petroleum Company’s stock price has changed by -21.09% over the past week, -37.92% over the past month and -37.22% over the last year.

What we like:

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced on cashflow basis

The stock is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

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