CLR - Cimarex seen as top shale M&A candidate; shares +10% in two days

Cimarex Energy ([[XEC]] +1.8%) is a rare gainer among oil and gas producers today after jumping 7.5% yesterday, as the stock is viewed as a top takeover candidate in the consolidating U.S. shale sector.Stifel analysts see Cimarex as possibly the top remaining target given its free cash flow profile and "clean" corporate structure, although the firm also considers Continental Resources ([[CLR]] -1.5%) and Diamondback Energy ([[FANG]] -2.3%) as top remaining E&P candidates for M&A deals.Susquehanna analyst Biju Perincheril says combinations involving the likes of Cimarex, Marathon Oil ([[MRO]] -0.8%) and Apache ([[APA]] -4.9%) "could make sense to lower cost structures," while Diamondback is the only remaining mid-to-large-cap pure play Permian operator.Raymond James upgrades Cimarex to Outperform from Market Perform with a $35 price target, implying a roughly one-third gain from this morning's open.Wall Street analysts are overwhelmingly bullish on XEC shares, while the stock's Quant Rating is only Neutral.

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Cimarex seen as top shale M&A candidate; shares +10% in two days