Goldman Sachs-- Buy recommendation for AMR with target price of $6.50
This small-cap energy play doubles as a potential takeout candidate. Alta Mesa Resources Inc. (NYSE: AMR) is an oil and gas exploration company focused on the development and acquisition of unconventional oil and gas reserves in Oklahoma. Its exploration operations are located in the eastern portion of the Anadarko Basin and are referred to as Sooner Trend Anadarko Basin Canadian and Kingfisher County (STACK).
The STACK represents the company’s exploration locations, the Alta Mesa acreage and the Kingfisher Midstream plant. It is a prolific hydrocarbon system with high oil- and liquids-rich natural gas content and has multiple horizontal target horizons.
Goldman Sachs has a massive $6.50 price target on the shares, while the Wall Street consensus target was last seen at $5.88. But the shares were changing hands most recently at $1.53 apiece.
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