UPDATE: Imperial Capital Initiates Coverage on Penn Virginia Corporation with Outperform Rating, $13.50 PT on Potential for Strong Production Growth in 2014

In a report published Thursday, Imperial Capital analyst Kim Pacanovsky initiated coverage on

with an Outperform rating and $13.50 price target. In the report, Imperial Capital noted, “We are initiating coverage of PVA shares with an Outperform rating and a one-year price target of $13.50, representing a 23% increase from the 12/4/13 closing price of $10.94. In a three-year time frame, PVA has transformed itself from a gas producer to an oil producer with a large 67,000 net acre position and rapidly growing production in the oil window of the Eagle Ford Shale. PVA plans to grow 2014 oil production by 65-85% sequentially, accomplished not just by the acquisition of Magnum Hunter's Eagle Ford acreage, but also growth via the drillbit. PVA has also succeeded in improving operational efficiency and reducing costs, and we anticipate that liquids will grow by 64% in 2014, with overall production growing 33%. Beyond an 890 location inventory in the lower Eagle Ford, evaluating the highly prospective marl of the upper Eagle Ford is underway.” Penn Virginia Corporation closed on Wednesday at $10.94.