UPDATE: C.K. Cooper Initiates Coverage on Approach Resources with Buy Rating, $43 PT

In a report published Friday, C.K. Cooper & Company initiated coverage on Approach Resources (NASDAQ: AREX) with a Buy rating and $43.00 price target.

C.K. Cooper noted, “We are initiating coverage on Approach Resources Inc. with a BUY rating and a price target of $43.00. AREX is a small cap E&P with an operational focus in the Southern Midland Basin on the southeastern portion of the broader Permian Basin in west Texas. The Company maintains a concentrated footprint of 166,000 gross (146,000 net) acres with multiple, stacked horizontal and vertical targets across its acreage. This operational focus has provided the Company with a strong reserve base, which serves as a solid foundation while establishing a deep inventory of liquids-rich drilling opportunities. Its seasoned management team emphasizes low risk and low cost development, and maintaining financial flexibility to achieve consistent production and reserve growth.”

Approach Resources closed on Thursday at $30.67.