Prudential Rates El Paso a 'Speculative Buy'

Analyst Carol Coale thinks upside exists as the company's refinancing is completed

El Paso (EP ) shares rose after the company says execution on 2003 operational and financial plan initiatives continues to make progress.

Prudential recommends the stock as a speculative buy. Analyst Carol Coale says separate from EP's planned $4.75 billion jumbo credit facility under negotiation, the company expects to complete a refinancing program by the end of this week which frees up about $750 million to $800 million of "trapped" annual cash flow and generates another $1.45 billion of cash and liquidity.

Coale notes that EP has a successful track record and has met targeted proceeds from projected asset sales over the past ten years. She recommends EP as a speculative buy for deep value and risk tolerant investors only. She thinks upside exists as its refinancing completed. She has a $9 price target on the shares.

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