Battalion Oil price target lowered to $18.60 from $24 at Roth MKM

Roth MKM analyst John White lowered the firm’s price target on Battalion Oil to $18.60 from $24 and keeps a Neutral rating on the shares. The analyst cites the company having obtained a commitment from its equity shareholders to purchase additional preferred equity securities in an amount up to $38 million and provided notice to the investors of its intent to draw the full $38 million. Roth MKM adds however that while liquidity from the recent issues of preferred stock, together with the $18.5 million of cash on hand, should satisfy the 2023 loan repayments requirements, Battalion Oil will require a renegotiation of the existing credit facility or a new credit facility provided by different lender over the longer term.