Market Overview

UPDATE: Global Hunter Securities Initiates Buy, $25 PT on Sanchez Energy

Share:
Related SN
Credit Suisse's E&P Earnings Recap And Top 3 Stock Picks
Morning Market Losers
Elite Value Investors May 13F Portfolio - Strategy Continues To Outperform The S&P 500 (Seeking Alpha)

Global Hunter Securities initiated its coverage on Sanchez Energy (NYSE: SN) with a Buy rating and a price target of $25 as it considers the company a Eagle Ford Shale pure play.

Global Hunter Securities commented, "Sanchez Energy (SN) is a unique small-cap E&P and one of the purest Eagle Ford Shale plays in the E&P sector. Via last December's IPO, SN broke off from its private parent company, Sanchez Oil & Gas (SOG). SN has approximately 404 drillable locations in the Eagle Ford spread around three primary fields. While recent well results may have disappointed investors, our conservatively modeled type curve (which rests well below the company's modeled type curve) still suggests substantial profit potential. Given the solid rates of returns from its Eagle Ford wells combined with a competitive $17 F&D cost per barrel, we believe SN has significant long-term growth potential from a relatively small resource base."

Sanchez Energy closed at $18.69 on Monday.

Latest Ratings for SN

DateFirmActionFromTo
Mar 2015Capital One FinancialDowngradesOverweightEqual-weight
Mar 2015KLR GroupDowngradesBuy
Dec 2014CLSADowngradesUnderperform

View More Analyst Ratings for SN
View the Latest Analyst Ratings

Posted-In: Global Hunter SecuritiesAnalyst Color Initiation Intraday Update Analyst Ratings

 

Related Articles (SN)

Around the Web, We're Loving...

Get Benzinga's Newsletters