Dahlman Rose Reiterates Buy and PT of $27 on Denbury Resources

Dahlman Rose reiterated its Buy rating on Denbury Resources (NYSE: DNR). At the same time, Dahlman Rose left its price target on the companies stock unchanged at $27. In a research report published today, Dahlman Rose raised some concerns about the company's production capacity, however.

In the report, Dahlman Rose states, "Denbury (DNR) valuation looks compelling, with the stock trading at a small multiple over its proved reserves, an EV/EBITDA multiple below the group median, and a visible long-term growth profile. However, we do fret about the company's ability to hit its 2011 production targets."

On Tuesday, Denbury added 0.25% to its value to close the day at $20.04.