UPDATE: Sterne Agee Upgrades Approach Resources to Neutral on Pullback and Permian Comps

Sterne Agee raises it rating on Approach Resources

from Underperform to Neutral. Sterne Agee notes, "We believe the sharp pullback in Approach shares, in conjunction with an industrywide valuation contraction, is overdone, barring another leg down in oil prices. Approach's share price now reflects a more balanced risk/reward outlook. Recent M&A activity, where a large Permian Basin acreage package sold for ~$17/boe, should support Approach as a potential acquisition candidate." AREX closed at $28.34 on Friday.