Wunderlich Securities Sees Multiple Positive Factors For Halcon Resources

In a report published Wednesday, Wunderlich Securities analyst Jason A. Wangler reiterated a Buy rating and $3.00 price target on Halcon Resources Corp (NYSE: HK).

In the report, Wunderlich Securities noted, "Halcon Resources (HK) updated operations and it was solid across the board given its better-than-expected 4Q14 production, solid increase in reserves, and improving well costs so far in 2015. It was good to see all of these numbers meet or exceed our expectations and the company reiterated its 2015 guidance while bringing down its CapEx spending forecasts due to the improving pricing environment. Overall, these updates, as well as the liquidity update, were rather positive in our view and show that the steps Halcon has undertaken in the past few months are paying off. Further, with a strong hedge book and solid expected production, the cash flow generation in 2015 remains strong and we believe HK remains undervalued versus peers and can move forward in a low oil price environment."

Halcon Resources closed on Tuesday at $2.23.