UPDATE: Wunderlich Initiates Bonanza Creek Energy With Buy, $29 PT on Visible Organic Growth
Wunderlich initiates its coverage on Bonanza Creek Energy (NYSE: BCEI) with a Buy rating and a price target of $29.
Wunderlich comments, "Bonanza Creek has a low-risk oily inventory capable of driving high-impact growth. We like BCEI's 29,262 net acres in the very tightly held Wattenberg Field, which is “hot” again with stacked horizontal potentials. BCEI ended 2011 with proved reserves of 43.9 mmboe. We believe that based on current inventory, BCEI can easily double its reserves. If the Niobrara C and Codell tests are proven productive, BCEI could triple its proved reserve base. The Mid-Continent Cotton Valley Play could also yield more drilling locations with five-acre down spacing. We would buy BCEI ahead of the more positive catalysts from the Niobrara."
BCEI closed at $14.97 on Thursday.
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