Siebert Williams Shank & Co analyst Gabriele Sorbara has maintained their bullish stance on MGY stock, giving a Buy rating yesterday.
Gabriele Sorbara has given Magnolia Oil & Gas a Buy rating due to a blend of positive factors. Despite encountering severe weather conditions which impacted their production, the company has maintained high single-digit growth guidance. Additionally, the fourth quarter results paired with a consistent outlook for 2024 are expected to generate a favorable market response. Sorbara’s confidence in the company’s performance is further bolstered by its ability to navigate challenges and uphold its growth trajectory.
Moreover, Magnolia Oil & Gas has demonstrated prudent financial management by guiding capital expenditures to a range between $450 million and $480 million, remaining under 55% of their EBITDA, and slightly below the consensus estimates. This disciplined approach to spending facilitates continued growth in both total production and oil-specific output. The anticipated year-over-year growth in production, with an expected oil production increase, strengthens Sorbara’s recommendation, suggesting a solid investment opportunity in Magnolia Oil & Gas.
Sorbara covers the Energy sector, focusing on stocks such as Comstock Resources, Callon, and Devon Energy. According to TipRanks, Sorbara has an average return of 9.1% and a 44.68% success rate on recommended stocks.
In another report released yesterday, Goldman Sachs also maintained a Buy rating on the stock with a $24.50 price target.
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Magnolia Oil & Gas (MGY) Company Description:
Magnolia Oil & Gas Corp. is engaged in oil and gas exploration and production business. It operates assets located in the Eagle Ford Shale and Austin Chalk formations in South Texas. The company was founded on July 31, 2018 and is headquartered in Houston, TX.
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