Wunderlich Securities Reiterates Hold, Raises Price Target On Approach Resources On Tangible Progress In Improving Margin

In a report published Friday, Wunderlich Securities analyst Irene O. Haas reiterated a Hold rating on

, and raised the price target from $5.00 to $8.00. In the report, Wunderlich Securities noted, "Hold-rated Approach Resources (AREX) continues to work on increasing efficiency and lowering costs to boost returns in this very difficult commodity environment. Approach delivered strong results for 4Q14, grew year-end 2014 proved reserves by 27%, and got down to lowering costs in a tangible way. 2015 spending guidance was lowered by another 11% while keeping production guidance mostly unchanged with 10% growth. Between a higher-than-expected EUR and a continual decline in costs, AREX's margin is looking much better than before. In addition, the company still has one of the best balance sheets within the small-cap space, which could position the company to be opportunistic during this downturn. We are encouraged by the company's efforts and look forward to seeing more margin improvement." Approach Resources closed on Thursday at $7.64.