Wunderlich Optomistic for GeoResources Inc

Analysts Jason Wangler and Neal Dingmann of Wunderlich Securities have a positive outlook for GeoResources Inc. (NASDAQ: GEOI). After reporting a strong 4Q09 that was essentially in line with estimates, the company continued to grow production through positive results in both the Austin Chalk (Texas) and Bakken Shale (North Dakota) segments of their oil and gas acquisition and development business.

These analysts believe the 4Q09 results are a sign of things to come in 2010 as they expect production to increase nicely throughout the year; specifically oil production through increased activity in the Bakken. Estimates have been adjusted slightly in response to the 4Q09 figures. They are encouraged by the 4Q09 results, anticipate a strong 2010, and maintain their Buy rating and $22.00 price target based on $3.79/share of 2010 cash flows and 5.8x cash flow multiple.

GEOI is up 1.09% today to $15.82 per share. The stock has climbed steadily since hitting $5.27 per share one year ago.