Northern Oil and Gas price target lowered to $42 from $45 at RBC Capital

RBC Capital analyst Scott Hanold lowered the firm’s price target on Northern Oil and Gas to $42 from $45 but keeps an Outperform rating on the shares. The company has had robust acquisition activity over the past 1-2 years consisting of nine large deals totaling $2.2B, which increased production by over 50%, but its management is now expected to take a pause to digest the transactions before evaluating additional large opportunities and prioritize focus toward its balance sheet, the analyst tells investors in a research note. The firm sees investors now debating Northern Oil’s plans for future shareholder returns following recent acquisition, appetite for additional M&A, and organic growth versus balance sheet improvement.