UPDATE: Wunderlich Securities Initiates Bill Barrett Corporation with Hold and $21 PT on Natural Gas Concerns
Wunderlich Securities initiates its coverage on Bill Barrett Corporation (NYSE: BBG) with a Hold and a price target of $21.
Wunderlich Securities says, "Barrett built up a significant base of Rocky Mountain natural gas plays over the past few years, but due to the reduced prices of the commodity, has shifted to focus its exploration and development activities toward oil. Initial results from multiple regions have been strong and oil production continues to grow at a rapid pace for Barrett, but natural gas still represents about 90% of its production mix. While we believe the company's oil prospects look positive and that the valuation looks interesting, we are initiating with a Hold rating given the early-stage nature of the oil program and our cautious stance on natural gas prices."
BBG closed at $18.35 on Wednesday.
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