Typical buy on rumour and sell on news. Here's CIBC's report from this morning. Atlhough they have maintained their $8.00 price target, with the nice bump in CFPS, it looks like they're just waiting for one of a number of catalysts before they raise it again. GLTA
Parex Resources Inc.
2013 Guidance; Much Better Visibility On Production Growth In 2013
? Parex released 2013 production guidance of 14-14.5 MBoe/d, higher than our previous forecast of 12 MBoe/d. Furthermore, management has set the 2013 capital budget at ~$210 million, lower than our forecast of $260 million.
? The main reasons for the higher guidance are the strong performances at Las Maracas and Tua as well as exploration success. As such, we have raised our 2013 average production to 13.7 MBoe/d. We have not included any of the exploration success in our production forecast.
? Parex has many upcoming catalysts in the near term, including the results of the Kona-Sur and Kona-16 appraisal wells on Block LLA-16, results from the Las Maracas-6 well, and the drilling and testing of the Max-2 well.
? We have updated our model for the 2013 guidance. Our 2013 CFPS increases from $1.26 to $1.57 and our Risked NAV is C$8.04. We maintain our SO rating and C$8.00 price target.