Wunderlich Securities Reiterates Buy and PT of $37 on Approach Resources

Wunderlich Securities reiterated its Buy rating and price target of $37 on Approach Resources AREX. In a research report published today, Wunderlich stressed it still sees Approach Resources as a very attractive investment. In the report, Wunderlich states, "We reiterate our Buy rating and $37 price target on Approach Resources, Inc. (AREX). We expect the Midland Basin horizontal Wolfcamp shale play to take off. We would buy AREX shares today. A Permian pure play and a first mover, the company has 138,000 net acres of prime land in the trend. AREX is just starting to drill its first wells, and we expect improvement with each successive well. AREX's closing price yesterday was $24.10, which is roughly equivalent to the value of its proved reserves on a per-share basis, with a “free option” on AREX's unconventional plays." On Wednesday, Approach Resources added 5.75% to its value to close the day at $24.10.