UPDATE: Credit Suisse Reinstates Coverage on Penn Virginia Corporation with Neutral Rating, $6 PT

In a report published Wednesday, Credit Suisse reinstated coverage on Penn Virginia Corporation

with a Neutral rating and $6.00 price target. Credit Suisse noted, “We reinstate coverage of Penn Virginia with a Neutral rating and a $6 target price. We revise our 2012/2013/2014 EPS estimates by +$0.08/+$0.48/+$0.18 to ($0.80)/($0.09)/$0.32 as the company plans to accelerate Eagle Ford development post a $149MM equity capital raise. The recent offering of 8MM common shares and a $115MM convert represent dilution of ~60%, but leave PVA in a much better financial position to drive growth in the Eagle Ford. We project the company will have ~$40MM in cash and an untapped $300MM borrowing base at YE12. Combined with $100MM in proceeds from a previously announced Appalachian Basin asset sale and a $32MM tax refund, we expect the company to exit 2012 with net debt-to-cap at 36% and net debt 2.6x annualized 4Q12 EBITDA vs. 48% and 3.2x at the end of 2Q12, respectively.” Penn Virginia Corporation closed on Tuesday at $4.73.