UPDATE: Topeka Capital Markets Initiates Coverage on Cimarex Energy Co. with Hold Rating, $80 PT on Less Attractive Value Proposition

In a report published Wednesday, Topeka Capital Markets analyst Gabriele Sorbara initiated coverage on Cimarex Energy Co. (NYSE: XEC) with a Hold rating and $80.00 price target.In the report, Sorbara noted, “We are initiating coverage of Cimarex Energy Company (XEC) with a Hold rating and price target of $80.00 per share. XEC has a strong inventory of organically generated drilling locations across the Permian Basin and Mid-Continent region (particularly in the CanaWoodford), but following the recent move [up 31.8% year-to-date vs. the PHLX SIG Oil Exploration and Production (EPX - $423.68) which is up 9.6%], we see a less attractive value proposition at the current share price. We believe success in extending the Wolfcamp and 2nd Bone Spring play into the Southern Delaware Basin and/or success in its new ventures in the Mid-Continent region may drive our RNAV upward and multiple expansion, resulting in a potential re-rating.”Cimarex Energy Co. closed on Tuesday at $76.08.