UPDATE: Wunderlich Securities Reiterates Buy Rating, Raises PT on Synergy Resources Corp.
In a report published Wednesday, Wunderlich Securities reiterated its Buy rating on Synergy Resources Corp. (NYSE: SYRG), and slightly raised its price target from $6.00 to $7.00.
Wunderlich noted, “Synergy Resources (SYRG) reported in-line results for fiscal 4Q12. SYRG also reported 2012 year-end reserves estimate of 10.7 mmboe and we revised our NAV to $7 from $6 accordingly. In October, SYRG entered into a definitive agreement to purchase 3,196 net acres from Orr Energy, a private Wattenberg producer, with 36 producing wells and 360 boepd of production. The deal is expected to close later this month. SYRG has a solid drilling inventory in the right zip code, capable of supporting multi-year growth. SYRG's ability to grow while keeping a lean balance sheet and costs contained is impressive in our view. We reiterate our Buy rating on this well run small cap producer.”
Synergy Resources Corp. closed on Tuesday at $3.75.
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