Morgan Stanley has revised its price target for Northern Oil and Gas (NOG, Financial), reducing it from $38 to $27. This adjustment is part of a broader reassessment of the firm's North American energy sector outlook, which includes updated financial forecasts for 2025 and 2026. Analysts pointed to the recent downturn in oil prices as a key factor influencing these revisions, noting that anticipated cash flows for the period now fall below consensus expectations.
The firm maintains an Equal Weight rating on NOG shares despite the downward revision. The decision to apply a greater discount to net asset value in valuation is influenced by the current market volatility, particularly affecting smaller and mid-sized producers and companies with uncertain operational execution.
Morgan Stanley's overall perspective on the exploration and production (E&P) industry remains cautious, with an In-Line rating, reflecting the persistently weak fundamentals in the oil market over the near to medium term. This stance underscores the firm's expectation of continued challenges for energy producers navigating the evolving market landscape.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for Northern Oil & Gas Inc (NOG, Financial) is $39.71 with a high estimate of $55.00 and a low estimate of $27.00. The average target implies an upside of 75.16% from the current price of $22.67. More detailed estimate data can be found on the Northern Oil & Gas Inc (NOG) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, Northern Oil & Gas Inc's (NOG, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Northern Oil & Gas Inc (NOG, Financial) in one year is $39.48, suggesting a upside of 74.15% from the current price of $22.67. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Northern Oil & Gas Inc (NOG) Summary page.
