UPDATE: Wunderlich Securities Initiates Hold, $72 PT on Continental Resources on Strong Logistics
Wunderlich Securities initiates its coverage on Continental Resources (NYSE: CLR) with a Hold rating and a price target of $72.
Wunderlich Securities notes, "The company has demonstrated industry-leading growth from its Williston Basin and Anadarko Woodford drilling programs that should continue through at least 2014 as Continental exploits its highly prospective plays. However, the company's shares trade at a significant premium (over 50%) to its peer group and we believe there is greater value in other names at these levels. Additionally, Continental is still outspending cash flows due to continual increases in activity and we expect debt levels to rise over the next two years until the company becomes cash flow neutral/positive."
CLR closed at $71.44 on Wednesday.
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