UPDATE: Bank of America Initiates Coverage on Athlon Energy with Neutral Rating, $33 PT on Good Growth Potential

In a report published Tuesday, Bank of America analyst Jason Smith initiated coverage on

with a Neutral rating and $33.00 price target. In the report, Bank of America noted, “We initiate coverage of Athlon Energy with a Neutral rating and PO of $33 / share. Athlon is a producer in the Permian Basin in Texas and is one of the most levered stocks to the emerging Wolfcamp shale. Sector leading production growth and upside to conservative risk assumptions on Wolfcamp potential across its core acreage anchors the investment case. Critically a shift to horizontal drilling in the next year should help derisk resource potential - but with substantial industry data points promising an early look at the potential across ATHL's acreage. Execution risk is countered by a strong management team. But with a share price that has jumped 50% post IPO, our enthusiasm is tempered only by limited potential upside to our risked NAV and a forward multiple that now stands at the high end of peers.” Athlon Energy closed on Monday at $30.00.