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UPDATE: Wunderlich Securities Reiterates On New Source Energy Partners LP As Outlook Remains Solid

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In a report published Wednesday, Wunderlich Securities analyst Abhishek Sinha reiterated a Buy rating on New Source Energy Partners LP (NYSE: NSLP), and raised the price target from $28.00 to $30.00.

In the report, Wunderlich Securities noted, “New Source Energy Partners L.P. (NSLP) reported 2QAdj. EBITDA of $11.4mm, missing our estimate of $13.7mm and consensus of $13.5mm, hit by lower NGL realizations. Production at 4,835 Boe/d was 2% above our estimates and distributions increased 1% sequentially to $0.58/unit. Although coverage was 0.71x, we expect full impact of EFS and RPS acquisitions in next quarter results boosting the coverage to 1.5x for 2H. NSLP is trading at a 20% discount to peers based on EV/EBITDA multiple. With a low leverage and strong coverage, the company is favorably placed on all financial metrics and in our opinion should trade in line with peers on EBITDA basis. We are raising our price target from $28 to $30 maintaining our Buy rating on the stock.”

New Source Energy Partners LP closed on Tuesday at $26.24.

Latest Ratings for NSLP

DateFirmActionFromTo
Aug 2015BairdDowngradesOutperformNeutral
Apr 2015WunderlichMaintainsHold
Dec 2014Stifel NicolausDowngradesBuyHold

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