UPDATE: Imperial Capital Re-Initiates Coverage on Magnum Hunter Resources Corp. with In-Line Rating, $8 PT on Revised Estimates for 2013-14

In a report published Wednesday, Imperial Capital analyst Kim Pacanovsky re-initiated coverage on

with an In-Line rating and $8.00 price target. In the report, Imperial Capital noted, “We are re-initiating coverage of MHR shares with an In-Line rating and a one-year price target of $8, about 12% above the recent share price. Furthermore, we are establishing revised and increased earnings estimates for 3Q-4Q13 and 2014. MHR holds a large acreage position and inventory in each of three high-IRR unconventional plays: the Marcellus, Utica/Pt. Pleasant, and Bakken/Three Forks Shale (TFS). We believe the company has ample near-term liquidity on the balance sheet, significant running room on its leasehold, and that results from its Utica Shale program can further enhance production, returns, and share price. Although we like that MHR is divesting non-core assets to further focus in highest IRR regions and the company has repeatedly proven its technical/operational prowess, we believe 3Q13 and 4Q13 results will reflect the lingering effect of Marcellus takeaway issues and in concert with weakening crude pricing, the shares could be unlikely to rally. The company will report 3Q13 financial results before the market open on 11/8/13.” Magnum Hunter Resources Corp. closed on Tuesday at $7.17.