UPDATE: Wunderlich Securities Initiates Resolute Energy Corporation with Hold, $9 PT; NO Growth Drivers Yet
Wunderlich Securities initiates its coverage on Resolute Energy Corporation (NYSE: REN) with a Hold and a price target of $9.
Wunderlich Securities notes, "The company has focused on boosting the recovery of oil from the mature Aneth field and also has exposure to the Permian and Williston basins. Aneth's strong production levels throw off excess cash that is used to build positions in higher-growth assets, which could boost production in the future. While we like Aneth's oily production and cash flow generation, we believe that until more data (well results) from the Permian and Williston is released, it is best to remain on the sidelines as Resolute trades near peers and its growth profile could be lower than similar-sized companies until it finds a repeatable asset to develop."
REN closed at $8.95 on Wednesday.
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Tags: Wunderlich Securities