UPDATE: Jefferies Initiates Coverage on Antero Resources on Compelling Valuation

In a report published Friday, Jefferies analyst Subash Chandra initiated coverage on Antero Resources Corp. (NYSE: AR) with a Buy rating and $75.00 price target.

In the report, Jefferies noted, “AR provides investors with a pure-play Appalachian operator with a vast inventory of unbooked resource and consistent long-term production and reserve growth. The acreage is contiguous, which allows for longer laterals, efficiency gains, bolt-on acreage purchases at discounted pricing, and economies of scale. Despite the run-up in the stock, valuation remains compelling. We initiate with a BUY rating and a $75 price target.”

Antero Resources Corp. closed on Thursday at $54.00.