UPDATE: Canaccord Genuity Initiates Buy, $33 PT on Sanchez Energy

Canaccord Genuity initiates coverage on Sanchez Energy

with a Buy rating and a $33 target price as it sees the company to be a pure play with solid inventory. Canaccord Genuity says, "Sanchez is almost entirely levered to the Eagle Ford Shale (~91,000 net acres), a rarity in the E&P space. Sanchez' premier asset, the Palmetto area of Gonzales County, represents approximately eight years of inventory at the '13E pace. The five latest Palmetto wells should recover ~650 Mboe (~80% oil) for a drill/complete cost of ~$9 million. These wells have an average PV-10 of ~$12 million by our estimate, which translates to a discounted value of ~$800 million for the 9,400 net acres." SN closed at $18.71 a share on Friday.