Wunderlich Securities Lowers Price Target On Gastar Exploration On Multiple Positive Factors

In a report published Tuesday, Wunderlich Securities analyst Jason A. Wangler reiterated a Buy rating on

, but lowered the price target from $5.00 to $4.00. In the report, Wunderlich Securities noted, “Buy-rated Gastar Exploration (GST) once again updated its 2015 plans which include a further reduction in 2015 spending and a subsequent reduction in expected production (though still showing nice growth). Gastar also reported its year-end reserves, which showed substantial growth; and though these were calculated at much higher commodity prices, it is also important to point out that both WEHLU and Marcellus EURs were increased nicely due to strong well performance and additional data. Overall we think Gastar had a strong 2014, as evidenced by its production growth, reserve additions, and strong balance sheet that we believe can allow the company to have a solid 2015 despite the decline in both oil and natural gas prices as Gastar focuses on economic returns and balance sheet strength.” Gastar Exploration closed on Monday at $2.55.