Cimarex Energy (NYSE:XEC) Valuation Should Rise on Permian

UBS (NYSE:UBS) says they're maintaining their "Buy" rating on Cimarex Energy (NYSE:XEC), as they see potential for their valuation to increase on opportunities in Permian.

UBS said, "On Wednesday, we hosted Cimarex at our 1x1 Energy Conference and came away with incrementally bullish takeaways. XEC has been one of the best operators in our coverage group over the past year, and shares have reflected as such, up roughly 80% YoY. Valuation has consolidated in the $70-$80 range for much of the last six months, a band that we see being re-rated higher as XEC delivers on its transformational horizontal Permian opportunities."

Cimarex is trading at $82.42, up by $1.48, or 1.83 percent, as of 12:40 PM EST. UBS raised their price target on them from $80 to $91.