UPDATE: Imperial Capital Initiates Approach Resources at In-Line on Catalysts

Imperial Capital initiated coverage on Approach Resources Inc.

with a In-line rating and a $28.00 price target. Imperial Capital noted, "We are initiating coverage of Approach Resources with an In-Line rating and a one-year price target of $28. Completion of infrastructure investment across its Southern Midland Basin acreage in 1Q13 should enable AREX to begin to move towards full development of its horizontal Wolfcamp Shale. Year-end 2012 reserves, 2013 guidance, and an update to its drilling and recompletion location count (with meaningful increase in horizontal locations) should serve as catalysts over the next month, we believe." Approach Resources closed at $25.98 on Wednesday.