Pritchard Sees 100%+ Appreciation On Rex Energy (REXX)
Pritchard Capital sees potential for 100+% share price appreciation on Rex Energy Corp. (NASDAQ: REXX), as the company announced a sale of 9,800 undeveloped acres in the Marcellus Shale via a joint venture. It has a $22 price target and a Buy rating.
In a note to clients, Pritchard writes, "Shares have underperformed given balance sheet risk, which is no longer a concern. It appeared the company would face a liquidity crunch by year end, with just $25 million available. Based on reduced capex, sale of proven reserves, midstream sale, drilling carries and $88 million cash infusion, we see liquidity in excess of $175 million at year end. We are also reducing our 2011 capex assumption from $250 million to $210 million for the carry impact."
Shares of REXX are up 28 cents this morning, gaining 2.48% to trade at $11.59.
