Jefferies analyst Subash Chandra reiterated a Buy rating and $22 price target on Penn Virginia (NYSE: PVA) saying while Q1 EPS missed their views, the Upper Eagle Ford test was encouraging.

Chandra comments, "Adjusted EPS of ($0.12) missed our estimate of ($0.06) on production that was ~9% below forecast due to timing of pad drilling. Despite the miss, the quarter was promising, in our view, as the Upper and Lower Eagle Ford test came on at strong rates, albeit more history is needed to determine if they are separate containers. PVA now has a ~15-year drilling inventory in the Eagle Ford and remains our favorite Small-Cap name."

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Shares of Penn Virginia closed at $16.01 yesterday.