UPDATE: Wunderlich Securities Initiates Coverage On New Source Energy Partners LP On Unique Business Model

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

with a Buy rating and $25.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of New Source Energy Partners LP. (NSLP), an oil & gas upstream MLP, with a Buy rating and $25 price target. NSLP is headquartered in Oklahoma with assets primarily located in east central Oklahoma targeting the Hunton formation. NSLP has a unique upstream business model to produce residual reserve from conventional resource plays previously deemed ‘not prospective' by others. At an attractive yield of 10.6%, NSLP is, however, trading at a discount to its peers. "With a strong support from dedicated infrastructure in place and a solid sponsor to facilitate dropdown opportunities, we believe NSLP should trade in line with its peers, realizing a total return of over 20%.” New Source Energy Partners LP closed on Thursday at $21.96.