Wunderlich Reiterates Buy Rating On Approach Resources

According to Wunderlich, Approach Resources (NASDAQ: AREX) Buy rating is reiterated.

Wunderlich said that the company continues to pursue emerging Permian plays in the Permian Basin aggressively. “The recent pullback presents a great buying opportunity, in our view. While the vertical WolfFork Play is moving into development mode, the horizontal Wolfcamp shale could see explosive growth this year, as multiple savvy producers are zooming in to drill wells. AREX's closing price was $23.00, which is roughly equivalent to the value of its proved reserves on a per-share basis, with a “free option” on AREX's unconventional plays.”

Approach Resources closed yesterday at $23.00.