Amplify Energy, the Energy sector company, was revisited by a Wall Street analyst yesterday. Analyst Subash Chandra from Benchmark Co. maintained a Buy rating on the stock and has a $11.00 price target.
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Subash Chandra has given his Buy rating due to a combination of factors that highlight Amplify Energy’s strategic moves to strengthen its financial position. The company has successfully sold its non-core Eagle Ford assets, which is expected to alleviate investor concerns regarding acquisitions and leverage. This sale not only aligns with the company’s priorities of debt reduction but also allows Amplify Energy to concentrate on its core Beta operations, which have shown promising production results.
Furthermore, the proceeds from the asset sale are earmarked for reducing the company’s outstanding debt, which stood at $125 million on a $145 million revolver. By focusing on debt reduction, Amplify Energy is likely to improve its financial health, potentially lowering its debt ratio by the year’s end. This strategic focus on asset optimization and financial prudence underpins Chandra’s optimistic outlook and the Buy rating for the stock.
In another report released on June 30, Northland Securities also initiated coverage with a Buy rating on the stock with a $6.00 price target.
AMPY’s price has also changed dramatically for the past six months – from $6.100 to $3.290, which is a -46.07% drop .