UPDATE: Morgan Stanley Initiates Bill Barrett Corporation at Overweight on Compelling Risk-Reward

In a report published Thursday, Morgan Stanley analyst Drew Venker initiated coverage on Bill Barrett Corporation BBG with an Overweight rating and $30.00 price target.

In the report, Morgan Stanley noted, “Compelling risk-reward: There is a strong probability that Bill Barrett transforms from a high-cost gas producer into an oil company with deep inventory. Expectations are low; little success is priced in. Offers cheap exposure to gas: trades at 6.1x 2013e EBITDA vs. gas weighted peers at 9.6x.”

Bill Barrett Corporation closed on Wednesday at $21.76.