Integrated oil producer Hess Corp. (HES) on Tuesday received some lukewarm commentary from analysts at Dahlman Rose.
The firm initiated coverage on HES with a “Hold” rating and a $56 price target, suggesting a 12% upside to the stock’s Monday closing price of $50.02.
A Dahlman Rose analyst commented, “We view Hess’ ongoing portfolio transition, above-average leverage to oil, and recent success in unconventional resources positively. However, expected flattish near-term production growth and a relatively high debt load keeps us on the sidelines for now.”
Hess shares were mostly flat in premarket trading Tuesday. The stock has fallen about 12% year-to-date.
The Bottom Line
Shares of Hess Corp (HES) have a .80% dividend yield, based on last night’s closing stock price of $50.02. The stock has technical support in the $45 price area. If the shares can firm up, we see overhead resistance around the $55-$56 price levels.
Hess Corp. (HES) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.