UPDATE: Canaccord Genuity Initiates Coverage on Bonanza Creek Energy with Buy Rating, $49 PT on Attractive Risk/Reward Profile

In a report published Thursday, Canaccord Genuity analyst Ipsit Mohanty initiated coverage on Bonanza Creek Energy BCEI with a Buy rating and $49.00 price target. In the report, Mohanty noted, “Bonanza Creek (BCEI) offers pure-play exposure to what we believe are the ‘sweet spots' of the DJ Basin. With a double-digit multi-year production growth (65% in '13, 50% in '14) anticipated, and an inventory poised to grow exponentially with downspacing and derisking, we believe BCEI presents an attractive risk/reward profile. Based on our $49 price target, we see 40% upside over 12 months, skewed higher in a ‘bull case' of $55.” Bonanza Creek Energy closed on Wednesday at $35.09.