UPDATE: Wunderlich Securities Initiates Berry Petroleum Company with Buy and $50 PT

Wunderlich Securities initiates its coverage on Berry Petroleum Company

with a Buy rating and a price target of $50. Wunderlich Securities comments, "Berry's oily California assets provide significant cash flows that allow the company to grow its Permian and Uinta basin assets without materially outspending cash flows. The depressed natural gas environment actually helps Berry's margins due to its use of the fuel to generate its California steam floods. We see the current valuation of Berry as an opportunity given the stock trades at a discount to peers (2.8x 2013E CFPS vs. 3.9x) despite its oil focus, strong margins, and solid financials." BRY closed at $37.67 on Wednesday.