UPDATE: KeyBanc Capital Markets Initiates Coverage on Gulfport Energy Corporation with Buy Rating, $70 PT on Very Compelling Upside Over Next Year

In a report published Tuesday, KeyBanc Capital Markets analyst David Deckelbaum initiated coverage on

with a Buy rating and $70.00 price target. In the report, KeyBanc Capital Markets noted, “We are initiating coverage of Gulfport Energy Corporation (GPOR-NASDAQ) with a BUY rating and price target of $70 per share. While we are not necessarily early to the Utica story, we see very compelling upside over the next 12 months after a series of infrastructure related growing pains in 2013. We estimate that GPOR will be able to increase production by almost 10x from current levels by the end of 2015, following 318% estimated growth in 2014 and 81% in 2015, more than 4x the closest peer in 2014. What stands out in particular for GPOR is the ability to generate this growth by only outspending cash flow by 34% in 2014 and actually generating free cash in 2015, even after an aggressive leasing budget comprising 25% of annual capex.” Gulfport Energy Corporation closed on Monday at $57.67.