Wunderlich Securities Remains Bullish On Gastar Exploration Despite 4Q14 Miss

In a report published Monday, Wunderlich Securities analyst Jason A. Wangler reiterated a Buy rating and $4.00 price target on

. In the report, Wunderlich Securities noted, "Buy-rated Gastar Exploration (GST) reported a 4Q14 miss as EPS of $0.02 were below our $0.08 estimate and the Street's $0.06 forecast due primarily to continued differential issues, specifically in the Appalachian region, which caused revenue to below expectations. Production was in line with expectations at 11,700 boe/day as this figure was previously announced; but this shows how pricing weakness affects overall numbers. Gastar has focused on this issue for some time by aggressively hedging production and also focusing its activity in the more pricing-friendly Oklahoma position where it continues to generate strong results. With the production moving higher, CapEx being reigned in, and a solid liquidity position, we remain bullish on Gastar." Gastar Exploration closed on Friday at $2.25.