UPDATE: Miller Tabak Initiates Buy, $23 PT on Sanchez Energy

Miller Tabak initiated coverage on Sanchez Energy (NYSE: SN) with a Buy rating and a price target of $23 on the company's sizable Eagle Ford position.

Miller Tabak said, "The company has amassed a sizeable acreage position in the “oil window” of the Eagle Ford shale and initial results from recent wells look promising. We believe the large undeveloped asset base will provide Sanchez Energy with hundreds of drilling locations and provide years of high rate-of-return growth opportunity that should allow the company to significantly boost production and cash flow going forward."

Sanchez Energy closed at $16.64 on Tuesday.