UPDATE: Canaccord Genuity Raises Penn Virginia's PT

According to a research report published this morning, Canaccord Genutiy has increased Penn Virginia's

PT from $9 to $11. In the report, Canaccord Genuity commented, "We are raising our target $2 to $11 due to higher oil production/price realizations. Investors are valuing Penn Virginia's Eagle Ford asset on 120-acre spacing and pricing production at ~4x in our view. How does PVA double from current levels? First, sell Mid-Con assets at a higher valuation. Second, increase locations on current leasehold by downspacing Gonzales and derisking Lavaca. Third, add acreage. We assume $25 million in annual leasehold acquisition at ~$10,000/acre, though Penn Virginia added Lavaca acreage for ~$2,000/acre." Canaccord Genuity maintains its Buy rating on Penn Virginia, which closed Friday at $5.44.