UPDATE: Credit Suisse Initiates Magnum Hunter Resources at Outperform on Inventory Build
Credit Suisse initiated coverage on Magnum Hunter Resources (NYSE: MHR) with an Outperform rating and a price target of $6 a share.
Credit Suisse noted, "Inventory Built, Ramping Oil/NGL Growth. MHR has spent ~$1.2 billion on acquisitions since 2009, building a deep, repeatable project inventory in some of the best North American onshore liquids plays, including the Eagle Ford, Three Forks, and liquids-rich Marcellus. MHR also offers attractive exploration exposure in the Utica and Pearsall shales. As a result of accelerating development in the Eagle Ford and Three Forks, we project that MHR will deliver production and cash flow growth at 66% and 83% CAGRs through 2013, well ahead of the Credit Suisse SMID-cap E&P peer medians of 16% and 27%, respectively."
Magnum Hunter Resources closed at $4.59 on Wednesday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.