Ultra Petroleum (NYSE:UPL) Driven by Marcellus Shale

Jefferies said they consider infrastructure problems and other issues are largely behind Ultra Petroleum (NYSE:UPL), and see acceleration from Marcellus Shale picking up for them going forward.

"Unencumbered acceleration in Marcellus activity should drive shares higher. Infrastructure issues and slowdown in non-op activity have hindered the ramp and held down the stock. We believe these issues are largely in the past," said Jefferies.

Full year earnings for 2010 was raised from $2.29 to $3.23, and for full year 2011, from $2.17 to $2.74. Jefferies maintains a "Buy" rating on Ultra.

They were trading at $47.26, falling by $1.28, or 2.64 percent as of 12:24 PM EST. Jefferies increased their price target on them from $49 to $55.