UPDATE: Wunderlich Securities Initiates Kodiak Oil & Gas with Buy and $10 PT on Rapid Activity Growth
Wunderlich Securities initiates its coverage on Kodiak Oil & Gas (NYSE: KOG) with a Buy rating and a price target of $10.
Wunderlich Securities comments, "The company has built a 157,000 net acre position in the Williston basin that we believe contains some of the most productive areas of the region. We expect Kodiak to exhibit industry-leading production growth through the exploitation of this acreage in the coming years. It has solidified its balance sheet in order to provide the liquidity needed to grow production. We believe the current valuation of the stock is compelling given Kodiak trades at a discount to peers despite the expected growth in 2012 and beyond."
KOG closed at $7.75 on Wednesday.
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