Wells Fargo Begins Coverage of Hess (HES)

Wells Fargo reported on Friday that they have begun coverage of energy company, Hess Corp.(HES).

The firm announced that they have initiated coverage of HES with a “Market Perform” rating, and a valuation range of $52 to $58. This price target suggests up to a 13% increase from the stock’s current price of $50.50.

A Wells Fargo analyst noted, “we have initiated coverage of HessCorp. (HES) with a Market Perform rating on the shares and a valuation range of $52-58. Our rating reflects our view that Hess’ ongoing transition requires more time and that the high level of net debt is likely to negatively weigh on the equity valuation in the near term at least. We value Hess on a NAV basis, which is consistent with our approach to its peer group. Our 2012E and 2013E EPS are $6.33 and $6.30.”

Hess shares were mostly flat during premarket trading Friday. The stock is down 11.09% YTD.

The Bottom Line
Shares of Hess Corp (HES) have a .79% dividend yield, based on last night’s closing stock price of $50.50. The stock has technical support in the $45 price area. If the shares can firm up, we see overhead resistance around the $55 price level.

Hess Corp.(HES) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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