UPDATE: Bank of America Resumes Vanguard Natural Resources at Neutral Post Deal
Bank of America resumed coverage on Vanguard Natural Resources (NYSE: VNR) with a Neutral rating and a price objective of $32.
Bank of America noted, "We resume coverage of Vanguard Natural Resources LLC (VNR) with a Neutral rating and raise our PO from $30 to $32, reflecting the impact of a recent acquisition and expectations of prospective distribution growth. An accretive deal in the Arkoma basin will deliver production growth, but we believe margins will suffer due to prevailing gas prices and lower hedge volumes in 2013 / 14. Moreover, VNR has rebalanced its portfolio away from liquids with the 92% gas weighted Arkoma acquisition removing one of the key reasons the market rewarded VNR a premium multiple."
Vanguard Natural Resources closed at $28.59 on Monday.
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