UPDATE: Topeka Capital Markets Initiates Coverage on Athlon Energy on Good Upside Potential

In a report published Tuesday, Topeka Capital Markets analyst Gabriele Sorbara initiated coverage on Athlon Energy (NYSE: ATHL) with a Buy rating and $40.00 price target.

In the report, Topeka Capital Markets noted, “We are initiating coverage of Athlon Energy with a Buy and $40 PT. ATHL holds ~102,000 net acres in the Midland Basin, which we believe are prospective for numerous horizontal zones. Based on our analysis, offset operators' results have de-risked a majority of ATHL's acreage for multiple horizontal zones. The greatest upside to the ATHL story is around the potential in Howard county (~55,000 net acres), which has seen less horizontal activity; however, early results and data from peers are encouraging.”

Athlon Energy closed on Monday at $30.86.