Magnum Hunter (MHR) Buy Rating Affirmed at Topeka Capital

Topeka Capital reiterated a Buy rating on Magnum Hunter (NYSE: MHR) with a modified price target of $8 (from $10). Analyst Gabriele Sorbara thinks a production inflection is nearing.

"We believe the inflection point is nearing, given the significant production ramp expected into year-end/1Q15. Further, with the Company’s plans to sell its remaining Bakken assets and with the initial public offering (IPO) of its midstream assets in 1H15, MHR should emerge with an improved liquidity and as a pure-play Appalachia Company, garnering a premium valuation," said Sorbara.

"In addition to the aforementioned catalysts, we believe a strong buying opportunity has emerged following the recent sell-off (down 48.8% from its 52-week high) and into a potentially improving natural gas price environment. We reaffirm our Buy rating, but lower our PT to $8 from $10 on the multiple contraction in the sector," added the analyst.

For an analyst ratings summary and ratings history on Magnum Hunter click here. For more ratings news on Magnum Hunter click here.

Shares of Magnum Hunter closed at $4.69 yesterday.

You May Also Be Interested In

• Establishment Labs Inc. (ESTA) PT Raised to $95 at Needham
• Jacobs Engineering Group Inc. (J) PT Raised to $170 at Goldman Sachs
• Insight Enterprises (NSIT) PT Raised to $175 at Raymond James