Market Overview

UPDATE: Citigroup Initiates Buy, $5 PT on Magnum Hunter Resources

Related MHR
Magnum Hunter Resources Announces Closing Of New Credit Facilities And Refinancing Of Prior Revolving Credit Facility
Encana to Divest Natural Gas Focused Clearwater Assets

Citigroup initiated coverage on Magnum Hunter Resources (NYSE: MHR) with a Buy rating and a price target of $5 on the company's resources and production outlook.

Citigroup noted, "Since May, MHR's shares have sharply underperformed the E&P sector and the broader markets. Consequently, shares currently trade at only 64% of proven only NAV vs an avg of 90% for our E&P coverage group. Considering its long-life drilling inventory with attractive economics, the substantial upside relative to its proven reserve base and solid, oil/liquids-rich production growth outlook, we think shares should trade at least inline with the group on this metric. Thus, we are establishing a price target of $5.00 per share (~90% of proven only NAV) and initiating coverage with a Buy rating."

Magnum Hunter Resources closed at $3.50 on Monday.

Latest Ratings for MHR

DateFirmActionFromTo
Oct 2014WunderlichMaintainsBuy
Oct 2014KLR GroupUpgradesHoldBuy
Oct 2014KeyBancMaintainsBuy

View More Analyst Ratings for MHR
View the Latest Analyst Ratings

Posted-In: CitigroupAnalyst Color Initiation Intraday Update Analyst Ratings

 

Related Articles (MHR)

Around the Web, We're Loving...

Get Benzinga's Newsletters