UPDATE: Deutsche Bank Initiates Coverage on Antero Resources on Valuation

In a report published Monday, Deutsche Bank analyst Stephen Richardson initiated coverage on Antero Resources AR with a Hold rating and $62.00 price target. In the report, Deutsche Bank noted, “A Marcellus/Utica pure play with a track record of execution and ample access to capital, we view AR as a perfectly conceived E&P growth company. After a successful IPO and further move in the equity since (27%), we view risk/reward as fairly balanced. Top-tier production growth (3 year CAGR of 47%) and resource (2,500 locations with 40%+ IRR) is offset by current valuation which must consider future development capital and a substantial hedge position. We initiate at Hold and look to re-evaluate as AR executes on the multi-year program and the market's view of value evolves.” Antero Resources closed on Friday at $55.64.