Imperial Capital Raises Price Target on Gastar Exploration (GST) Following Announced Transactions

October 21, 2016 7:53 AM EDT
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Price: $1.45 -2.03%

Rating Summary:
    9 Buy, 10 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 24 | Down: 17 | New: 14
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Imperial Capital reiterated an Outperform rating on Gastar Exploration Limited (NYSE: GST), and raised the price target to $1.75 (from $1.30), following the company's announced joint development agreement and $71.0mn sale of its “Southern STACK” properties.

Analyst Kim Pacanovsky commented, "On 10/20/16, GST announced two transactions: the first was a joint development agreement whereby the partner will fund 90% of the capital costs to drill three tranches of 20 wells, for an initial 80% WI (details discussed herein) and the second is the $71.0mn sale of its “Southern STACK” properties. The combination of the two transactions results in a low cost method of derisking its properties while providing a cash infusion to give GST extra liquidity padding during the process. Both of these events are very positive for GST, and lead us to increase our price target to $1.75 from $1.30."

For an analyst ratings summary and ratings history on Gastar Exploration Limited click here. For more ratings news on Gastar Exploration Limited click here.

Shares of Gastar Exploration Limited closed at $1.39 yesterday.

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