Denbury Resources a Buy to $24

Denbury Resources, Inc. (DNR - Analyst Report) is a leading tertiary oil player, with a solid asset base and an impressive track record of production and reserve growth. We expect this growth momentum to continue over the next five years.

Our continued favorable view of Denbury shares reflects the company's low risk profile and niche business model. In response to the commodity-price pullback and credit market issues, the company has reduced its capital budget to bring its projected outlays within operating cash flows.

Our Buy recommendation, estimates and price target remain unchanged. While near-term headwinds remain, particularly if the global demand weakness turns out to be greater than currently expected, our medium to long-term oil-price outlook remains favorable.