UPDATE: Wunderlich Securities Initiates Coverage on Spark Energy with Buy Rating, $20 PT on Positive Outlook

In a report published Monday, Wunderlich Securities analyst Mike Bates initiated coverage on Spark Energy SPKE with a Buy rating and $20.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of Spark Energy Inc. (SPKE) with a Buy rating and a $20.00 price target. The firm operates as a retail energy services provider for ~270,000 customers across 16 states with competitive markets and choices for natural gas and electricity providers beyond the local incumbent utility. We believe the firm's scalable business model and experienced management team position it well for future growth as it continues to execute an aggressive customer acquisition program. The shares carry an 8.1% dividend yield, attractive growth prospects, and a strong balance sheet. Our $20 price target equates to 5.3x our forecast of 2015 EBITDA, which compares to the 3.6x-6.7x EBITDA valuation range for private market acquisitions of similar energy retailers.” Spark Energy closed on Friday at $17.87.