UPDATE: Wunderlich Securities Initiates SandRidge Energy with Buy and $8 PT
Wunderlich Securities initiates its coverage on SandRidge Energy (NYSE: SD) with a Buy and a price target of $8.
Wunderlich Securities comments, "The company has transitioned nicely from a natural gas focus toward oil in the past few years and now is a dominant player in both the Horizontal Mississippian play in Oklahoma/Kansas and the Permian basin. Funding the transition has been a concern for SandRidge in the past, but with ample liquidity currently, strong (and improving) oil production, and multi-year drilling inventory, we believe the company can now focus on execution. We expect SandRidge to exhibit significant EBITDA and cash flow growth in the coming years as it continues to develop its highly economic plays."
SD closed at $6.31 on Wednesday.
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