Thursday, January 20, 2011

Magnum Hunter (NYSE:MHR) Asset Base, Growth Potential Look Strong

The asset base and growth potential of Magnum Hunter (NYSE:MHR)continues to impress Canaccord, which raised their price target on the company, also citing their acquisition of NuLoch Resource.

Canaccord says, "We are reiterating our BUY rating and raising our target price based on the company’s NuLoch Resource acquisition. We are growing increasingly more constructive on Magnum Hunter’s asset base and relative growth potential. In particular, we are very encouraged by the announced transactions and MHR’s strong start in the Eagle Ford and Marcellus projects. We believe the stock is well positioned to outperform based on its leading exposure to the Eagle Ford and Bakken oil trends and material catalysts (including Eagle Ford wells, bolt-on transactions and JV partnerships)."

Canaccord Genuity maintains a "Buy" rating on Magnum Hunter (MHR), which was trading at $7.01, down $0.18, or 2.50 percent, as of 2:07 PM EST. Canaccord has a price target of $8.50 on Magnum Hunter.

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