Wunderlich Upgrades Gran Tierra To Buy

Wunderlich Securities believes Gran Tierra Energy, Inc. (NYSE: GTE) has found its next Costayaco Field in the form of its Moqueta oil discovery. In addition, the company has other near-term exploration opportunities that could be equally as attractive.

Wunderlich is upgrading its rating to Buy from Hold and increasing the price target to $12.50 per share from $7.00 per share. The $12.50 price target is derived from the 2011 cash flow per share estimate of $1.64 applied to a peer group price target multiple of 7.6x. Wunderlich's cash flow upside comes primarily from our forecasted growth at Moqueta along with the current Costayaco and other existing production.

Wunderlich has a Buy rating on GTE with a $12.50 PT

GTE is trading at $7.65