UPDATE: Wunderlich Securities Initiates Coverage on Gastar Exploration with Buy Rating, $9 PT on Multiple Positive Factors

In a report published Friday, Wunderlich Securities analyst Jason A. Wangler initiated coverage on

with a Buy rating and $9.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of Gastar Exploration, Inc. (GST) with a Buy rating and $9 target. The company has gone through a transformation with multiple acquisitions and divestitures but it is now positioned with two strong, scalable core assets in the Appalachia and Mid-Continent regions. Both core assets have the potential to see development in multiple zones due to stacked pays (multiple productive zones on the same acreage). Further, the geographic mix is solid for the commodity mix as Gastar now has exposure to all three streams and can deploy capital to the plays/commodities with the best return. We like the company's growth prospects from its proven Marcellus and Hunton targets and see strong upside potential in the Utica, Woodford, and Meramec formations that could generate value.” Gastar Exploration closed on Thursday at $6.29.