QR Energy

In a report published on Friday, Bank of America analyst Abhishek initiated coverage on Sinha QR Energy QRE with a Buy rating and a $20 price target. In the report, Bank ofAmerica stated, "QRE is trading at a 20% discount on distribution yield with a prospective yield of 11.6% versus the sector average of 9.7%. The company is also trading at a 12% discount on forward EV/EBITDA with a current forward multiple of 7.9x versus a sector average at 9.2x. With 69% liquids production, QRE has a higher liquids- weighted portfolio than the peer average of 44%. We remain constructive on its liquids rich portfolio, supported by an aggressive hedging strategy and potential upside from acquisitions." QR Energy closed on Thursday at $17.13.