UPDATE: Wunderlich Securities Reiterates Buy Rating, Raises PT for Harvest Natural Resources

In a report published earlier today, Wunderlich Securities, Inc. reiterated its Buy rating for Harvest Natural Resources, Inc. HNR and raised its price target from $7.00 to $11.00. Wunderlich went on to say “Harvest Natural Resources (HNR) has signed an agreement to sell its 32% stake in Petrodelta to PT Pertamina, the national oil company of Indonesia, for $725 million in cash ($525 million after adjustments, taxes and fees). While there are conditions before closing, the fact that HNR could receive $525 million in cash while having a current market capitalization of under $200 million demonstrates, in our view, the mispricing of Harvest's shares. We are adjusting our valuation metric to a sum-of-the-parts net asset value given the sale of its largest asset. Using the transaction's valuation and applying a 15% discount to account for the closing conditions boosts our target from $7 to $11. We maintain our Buy rating on HNR shares.” Harvest Natural Resources, Inc. closed yesterday at $4.88.