UPDATE: Topeka Capital Markets Initiates Coverage on Energen Corporation with Buy Rating, $62 PT on Solid Production Growth

In a report published Wednesday, Topeka Capital Markets analyst Gabriele Sorbara initiated coverage on Energen Corporation

with a Buy rating and $62.00 price target. In the report, Sorbara noted, “We are initiating coverage of Energen Corporation (EGN) with a Buy rating and price target of $62.00 per share. We are placing a top pick status on EGN given its solid production growth over the next few years, which has the potential for double digit growth in 2014 and beyond with success in the horizontal plays in the Permian Basin. EGN has a strong foothold in the Permian Basin with ~275,000 net acres in total and while they are early in the exploration process of several zones, we believe a majority of their acreage prospective for horizontal plays has been de-risked by offset activity. Furthermore, EGN trades at a 17.0% premium to its proved NAV of $44.00 per share, vs. its peers which trade at a more than 50% premium - an attractive valuation providing limited downside, in our opinion.” Energen Corporation closed on Tuesday at $51.47.