UPDATE: Macquarie Capital Reiterates Outperform Rating, Lowers PT on Approach Resources on Short-Term Pain for Long-Term Gain

In a report published Tuesday, Macquarie Capital analyst Joseph Magner reiterated an Outperform rating on

, but lowered the price target from $42.00 to $38.00. In the report, Macquarie Capital noted, “Along with its 3Q13 results, AREX cut its FY13 production guidance and introduced 2014 guidance targeting 40% YoY production growth with a US$400m E&D capex budget...Despite the near-term production stumbles, we continue to see meaningful upside to our conservative US$39.00/sh NAV estimate and our US$38.00 price target. If management can demonstrate solid execution over the next few quarters, we would expect this discount between AREX's NAV and its stock price to narrow, driving strong stock performance. We maintain our Outperform rating.” Approach Resources closed on Monday at $24.49.