UPDATE: Citigroup Raises PT on Magnum Hunter Resources as Thesis Evolves

In a report published Wednesday, Citigroup analyst John Nelson reiterated a Buy rating on Magnum Hunter Resources Corp. MHR, and raised the price target from $5.40 to $8.40. In the report, Citigroup noted, “Upon transferring coverage of Magnum Hunter in late August, our investment thesis and Buy rating were predicated on several catalysts potentially unlocking value over 2H'13. Due to subsequent stock appreciation we believe the share price now discounts several of our previous base case assumptions. Moving forward, delineation of the company's 110k net acres in the Utica shale could provide NAV accretion catalysts, improve the firm's capital efficiency outlook and drive the share price higher.” Magnum Hunter Resources Corp. closed on Tuesday at $7.27.