Boston, MA 03/25/2014 (wallstreetpr) -Analyst sentiments around Miller Energy Resources Inc (NYSE:MILL) do not appear to support a lot of optimism. The stock has witnessed its analyst ratings and price targets in the past month either remaining the same or adjusted in a negative way.
Shares of the company climbed more than 11 percent $5.78 during Monday session on solid share volume. The gain followed a big descent Friday during which the shares went down more than 7 percent.
Price target reduction
The big fallout during trading Friday was partly due to the bearish price adjustment that the stock received from analysts at Imperial Capital. The analysts though maintained an outperform rating on the stock, slashed their price target from $9.50 to $7.50, a drop of $2. The drop in price view suggests that analysts are not convinced of upside strength in the stock and this comes as a concern for investors. It is however important to note that even with the price cut, Imperial Capital’s price target implies price upside potential of more than 33 percent from the prevailing stock price.
While Imperial Capital reduced its price view on the stock of Miller Energy Resources Inc (NYSE:MILL), analysts at TheStreet believe that the company’s strengths and weaknesses cancel each other, thus they rate the stock as a “hold.” Suggesting that upside potential on the price of the stock is not clearly visible. TheStreet identifies multiple strengths in the stock such as impressive revenue growth, increasing net income and solid stock performance. They also see weaknesses such as poor growth in earnings per share and weak return on equity.
Can the company firm up?
Every investor is asking the question. Considering that the company boasts robust revenue growth, there is every reason to believe that things can get better if costs and expenses are properly controlled. And for things to get better, a good management team is needed and Miller Energy Resources Inc (NYSE:MILL) already has that.
