UPDATE: Wunderlich Securities Reiterates Buy Rating, Lowers PT on Resolute Energy Corporation as Stock Remains Asset Rich But Cash Poor

In a report published Tuesday, Wunderlich Securities analyst Jason A. Wangler reiterated a Buy rating on Resolute Energy Corporation REN, but lowered the price target from $10.00 to $5.00. In the report, Wunderlich Securities noted, “Resolute Energy (REN) reported an ugly 3Q14 as a loss per share of -$0.09 was well below our -$0.02 estimate and the Street's -$0.05 forecast as revenues and production were in line but higher costs ate into margins. More important, in our view, REN still has been unable to complete a financial transaction at Aneth (or anywhere else) that would allow the company to open up needed liquidity and strengthen its balance sheet. The lack of these moves, which we can understand is hurt by the current macro environment, causes us to lower our 2015 estimates significantly as REN looks to hunker down and wait for a better day. Look for REN to spend within cash flows going forward (as it has for the better part of 2014) and continue looking at options that can help it unlock its rich asset base.” Resolute Energy Corporation closed on Monday at $2.90.