Pritchard Capital Upgrading Kodiak Oil & Gas

Pritchard Capital is out with a research report on Kodiak Oil & Gas Corp. (NYSE: KOG) and is upgrading shares to Buy.

In a note to clients, Pritchard Capital writes, "We are raising our NAV to $8.50 from $7 and price target to $8 from $7 primarily driven by using estimated YE 2011 proved reserves as well as the company's recent acreage acquisition. We are also upgrading the stock to 'Buy' from 'Neutral'. Our $8 price target, represents a 6.7x P/2012E CFPS multiple which is inline with the WB group median. Additional upside exists if KOG is able to further derisk its acreage outside of the FBIR as well as the Three Forks. We are adjusting our 2011 EPS/CFPS estimates to $0.33/$0.51 from $0.33/$0.52 as the dilution from the recent equity offering is offset by an increase in our production estimate to 4.73 MBoe/d from 4.64 MBoe/d. We are raising our 2012 EPS/CFPS estimates to $0.77/$1.19 from $0.67/$1.05 mainly driven by an increase in our production forecast to 10.77 MBoe/d from 8.29 MBoe/d. Please see our note “Raising NAV and Price Target, Upgrading to ‘Buy'” for further details."

Shares of KOG are up 7 cents in pre-market trading to $6.73.