UPDATE: Wunderlich Securities Initiates Coverage on Cimarex Energy as Delaware Wolfcamp is Yet to be Rewarded

In a report published Friday, Wunderlich Securities analyst Abhishek Sinha initiated coverage on Cimarex Energy (NYSE: XEC) with a Buy rating and $135.00 price target.

In the report, Wunderlich Securities noted, “We are initiating coverage of Cimarex Energy Co. (XEC) with a Buy rating and a price target of $135. Cimarex is an exploration and production company headquartered in Denver, CO, with assets in the Permian Basin, Mid Continent, and the Gulf Coast. Unlike in the Midland Basin, the Street has yet to fully credit companies leveraged to the Delaware Basin where the delineation work has picked up with encouraging data points. With 180,000 net acres prospective for the Wolfcamp play in the Delaware Basin, Cimarex is one of the most levered names to the emerging Wolfcamp play in the region. As the industry continues to de-risk the multiple pay-zone play, we believe positive data points could have material impact on Cimarex's valuation.”

Cimarex Energy closed on Thursday at $97.14.