UPDATE: Stifel Initiates Coverage On Memorial Resource Development On Emerging Terryville Asset
In a report published Tuesday, Stifel analyst Michael Scialla initiated coverage on Memorial Resource Development (NASDAQ: MRD) with a Buy rating and $30.00 price target.
In the report, Stifel noted, “We are initiating coverage of Memorial Resources with a Buy rating and 12-month target price of $30 per share. Our target assumes the stock achieves 100% of our total risked net asset value (NAV) estimate. An emerging multi-zone horizontal Cotton Valley sand play in north Louisiana's Terryville Field could drive our proved NAV estimate to $40/share at YE16 from $7/share at YE13 and annual production growth of 55% over this three-year period. Our total risked NAV is currently based on 180 net Terryville drilling locations, or less than 20% of the 990 net locations identified in the field. The latter implies a 28-year inventory based on the 2014 drilling pace.”
Memorial Resource Development closed on Monday at $25.36.
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|Dec 2014||Howard Weil||Upgrades||Sector Outperform||Focus Stock|
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