UPDATE:Miller Tabak Initiates Coverage on Carrizo Oil & Gas with Buy Rating, $46 PT on Best Eagle Ford Acreage

In a report published Monday, Miller Tabak analyst Adam Michael initiated coverage on Carrizo Oil & Gas CRZO with a Buy rating and $46.00 price target. In the report, Miller Tabak noted, “We believe Carrizo Oil & Gas holds some of the best Eagle Ford acreage in LaSalle County with over 10 years of high rate of return drilling inventory and that the stock will significantly outperform its peers as investors assign more value to the company's deep inventory. Additionally, Carrizo has locked up 16,000 net acres in the Utica shale, of which over 80% appears to be in the core of Guernsey and Noble Counties where some of the best wells have been drilled by other operators. A near-term opportunity exists for Carrizo to lock down an additional 16,000 net Utica acres from partner Avista Capital which could transform the company into a dual basin powerhouse with dominant acreage positions in the core areas of two of North America's hottest plays. We believe the stock price of Carrizo is significantly undervalued and will see multiple expansion in the coming months as investors begin to realize the upside potential of the Eagle Ford and Utica shale. We are initiating coverage of Carrizo with a $46 NAV-based price target, which represents a 4.5x multiple of our 2014 estimate of discretionary cash flow.” Carrizo Oil & Gas closed on Friday at $35.94.