UPDATE: Wunderlich Securities Initiates Coverage on Vanguard Natural Resources LLC on Diverse Portfolio

In a report published Wednesday, Wunderlich Securities analyst Abhishek Sinha initiated coverage on Vanguard Natural Resources LLC VNR with a Buy rating and $31.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage on Vanguard Natural Resources, LLC (VNR) with a Buy rating and $31 price target. VNR is an oil & gas upstream MLP headquartered in Houston, TX. The company has a diverse portfolio of long-lived producing properties with 80% of its proved reserves coming from the Permian, Arkoma, and the Big Horn basins. Through a series of gassy but accretive acquisitions, VNR has radically shifted its portfolio from having ~60% oil contribution in its production stream in 2011 to 66% gas production now. The company is trading at 10% premium to its sector; however, we believe the bias for the units' price would remain skewed higher for VNR anchored on its strong balance sheet, adequate coverage ratio, and near-term acquisition potential.” Vanguard Natural Resources LLC closed on Tuesday at $28.18.