BMO Capital analyst Philip Jungwirth initiated Berry Petroleum with an Outperform rating and a price target of $18. The analyst notes that the company's operating leverage is producing high cash margins, free cash flows, and growth, while its balance sheet strength is "top-tier" among the similar small-to-medium E&P firms. Jungwirth adds that the company's 100% oil production and high net revenue interests in California should allow it to grow output at a double-digit rate in 2019-2020. The analyst further notes that Berry Petroleum trades at a "deep discount" of 3.9-times the FY19 enterprise value to expected EBITDAX relative to the 4.3-times peer group median.