Denbury initiated with a Neutral at JPMorgan

JPMorgan initiated coverage of Denbury with a Neutral rating and $96 price target. The firm expects Denbury to generate roughly half of its free cash flow from the Carbon Capture, Utilization, and Storage business by 2023, which will be a steady stream of cash flows under long-term contracts without significant commodity price exposure, the analyst tells investors in a research note. The attractive long-term business mix and a strong balance sheet is balanced with a fair valuation, the firm contends.