UPDATE: Wunderlich Securities Initiates Coverage on Memorial Production Partners LP on Multiple Positive Factors

In a report published Wednesday, Wunderlich Securities analyst Abhishek Sinha initiated coverage on

with a Buy rating and $24.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of Memorial Production Partners LP (MEMP) with a Buy rating and a $24 price target. MEMP is an oil & gas upstream MLP headquartered in Houston, TX, that became public in December 2011. MEMP has a diverse portfolio of long-lived producing properties in the East TX/North LA, South TX, and Southern California regions. MEMP is currently trading at a discount to the sector. However, with its strong acquisition track record, affiliation with a drop-down sponsor, and a solid coverage ratio providing headroom to improve future distributions, we believe the trading multiple should move in line with the sector, resulting in attractive returns from near-term potential upside.” Memorial Production Partners LP closed on Tuesday at $20.83.