CapRock initiates research on PGSI assigns buy rating of $1.50!
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Dear Subscribers,
Exciting news in the Oil And Gas world today coming out of Caprock Risk Management by the super energy analyst Chris Jarvis. We found this small press clip and are looking for the entire report to bring to you asap. Everything we have been saying is on target. Looks like he is being conservative in attaching a price but its still almost a nice double from today's price of $.86. Read the snapshot below:
PGSI's Well Positioned to Have a Breakout Year
- We are initiating coverage on Pegasi Energy Resources Corporation with a STRONG BUY rating and with a 12-month price target of $1.50.
- We derived our $1.50 12-month price target by applying a 6.2x multiple to our Next Twelve Months (NTM) EPS estimate of $0.24. Currently, PGSI's shares trade at 3.5x multiple to our forward earnings estimate, a 65% discount to the company's peer group average multiple of 10.2x.
- We estimate that PGSI will become cash flow positive near the middle of the calendar year 2012 generating revenues of $10.957 million and EPS of $0.09 for the 2012 Calendar year.
- For calendar year 2013 (CY21013), we estimate that PGSI's EPS will rise 241% from $0.09 in 2012 to $0.30 in 2013.
- We are confident in our investment thesis that a strong management team with geological experience and expertise in the Rodessa field and ability to accumulate and consolidate acreage will drive and maximize shareholder wealth.
Chris Jarvis
Caprock Risk Management, LLC
From awesomepennypicks.com
