UPDATE: Imperial Capital Initiates Coverage on Synergy Resources on Multiple Positive Factors

In a report published Friday, Imperial Capital analyst Kim Pacanovsky initiated coverage on Synergy Resources (NYSE: SYRG) with an Outperform rating and $12.00 price target.

In the report, Imperial Capital noted, “We are initiating coverage of SYRG with an Outperform rating and a one-year price target of $12, about 20% above the recent share price. With about 25K acres in the core of the oil/liquids region of Wattenburg Field in Weld County, Colorado, and an equivalent holding in the extension area, SYRG is location rich, with over 200mboe of unrisked potential reserves.

"It has recently commenced its transition to horizontal pad drilling from vertical drilling, which we expect to rapidly increase production and reserves. The company's core assets, additional upside from the Wattenburg extension, and management's experience in the basin support our Outperform rating.”

Synergy Resources closed on Thursday at $10.02.