Shares of Newfield Exploration Co. could gain from increasing exposure to oil resources, an analyst said Monday as he upgraded the stock.
The oil and gas producer's shares rose 73 cents, or 1.8 percent, to $41.85 in afternoon trading. They had fallen 9 percent over the previous month.
BMO Capital Markets analyst Dan McSpirit said he upgraded the stock to outperform based on its recent weakness, the company's expanding profile in large-scale domestic crude oil and liquid-rich development and the company's abundant liquidity.
McSpirit added that while other independents struggle and shrink, Newfield can grow, given its liquidity and captured inventory. Additionally, there are "multiple catalysts on the horizon, from south Texas to the Rockies to China," McSpirit said.