Wells Fargo Upgrades Approach Resources (AREX) to Outperform; Permian Offers Meaningful Leverage

Wells Fargo upgraded Approach Resources (NASDAQ: AREX) from Market Perform to Outperform. Valuation range to $34-38 from $30-34.

Wells analyst says, "We believe Approach's 134,500 net acres in west Texas (Permian) offer significant Wolffork and Wolfcamp upside potential. Shares are off 21% in the last 20 trading days (the EPX is down 9%), and in our opinion, the dramatic selloff and overreaction in the last week was overdone...Approach Resources offers a deep inventory of low-risk development opportunities
complemented by significant exploration upside potential. Given this we believe AREX shares should outperform peers over the next 12-18 months."

For more ratings news on Approach Resources click here and for the rating history of Approach Resources click here.

Shares of Approach Resources closed at $24.71 yesterday.

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