Wunderlich Reiterates a 'Buy' on Legacy Reserves (LGCY); Comments on Capital Raise

September 23, 2009 8:24 AM EDT

Wunderlich reiterates a 'Buy' on Legacy Reserves (Nasdaq: LGCY), raises price target from $17 to $21.

Wunderlich analyst says, "In a move that we believe precedes growth through acquisition, Legacy Reserves announced and priced an overnight public equity offering of 3.3 MM units at $15.85 on Sept. 15, 2009. The underwriters exercised in full a 30-day option to purchase up to an additional 495K units. The issuance and sale of all units closed Sept. 18. We are reducing our earnings estimates based on an equity raise of ~$57.6 MM after deducting offering expenses, but raising our target price from $17 to $21 on an expectation of a resumption in distribution growth through acquisition and a move from NAV-based to yield-based for unrealized gain (loss) valuation."

To see more analyst ratings on LGCY Click Here.

Legacy Reserves LP, an independent oil and natural gas limited partnership, engages in the acquisition and development of oil and natural gas properties, primarily located in the Permian Basin and Mid-continent regions of the United States.

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