UPDATE: Global Hunter Securities Starts Antero Resources (AR) at Accumulate

Global Hunter Securities initiated coverage on Antero Resources (NYSE: AR) with an Accumulate rating and a price target of $63.00.

Analyst Sameer Uplenchwar said, "We believe AR has tier-one acreage in the Marcellus and Utica, and that it has been delivering operationally (90% absolute production growth rate through 2014E); even after significant equity appreciation following its IPO (+14% since its IPO on Oct. 10, 2013 at $44), we believe AR still has upside potential."

"With production growth targets having been achieved, we see the capex outspend (2014E capex of $3.7B vs. 2014E cash flow of $1.1B) as manageable with the company still having levers to pull to fund the program (discussed below). With 20 rigs deployed (including shallow/intermediate rigs) and firm transportation (FT) contracts in place, we see low risk to the strong forecasted production growth. As a result, we see a positive risk/reward driven by predictable growth and upside from downspacing and stacked pay potential."

For an analyst ratings summary and ratings history on Antero Resources click here. For more ratings news on Antero Resources click here.

Shares of Antero Resources closed at $50.07 yesterday.

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