UPDATE: Miller Tabak Initiates Clayton Williams Energy at Buy on Asset Value

Miller Tabak initiated its coverage on Clayton Williams Energy CWEI with a Buy rating and a price target of $95 per share. Miller Tabak said, "We are initiating coverage on Clayton Williams Energy with a Buy rating and setting a $95 price target. We also feel the Senior Notes yielding ~7.5% offer compelling value as the sum of the parts of Clayton Williams are worth ~ 50% more than the current enterprise value. The company has underperformed the sector this year, but we feel that is about to change as investors begin to realize the value in Clayton Williams Energy's Cline shale acreage and Eagle Ford shale acreage. The company sports a hefty Debt/Cap ratio, but recent comments by management indicate that we could see asset sales of legacy assets or a JV on undeveloped assets to reduce debt levels and de-lever the company." Clayton Williams Energy closed at $58.53 on Monday.