Legacy Reserves -5% as Wunderlich downgrades on cloudy 2014 outlook

|About: Legacy Reserves LP (LGCY)|By:, SA News Editor

Legacy Reserves (LGCY -5%) is downgraded to Hold from Buy with a $26 price target, down from $31, at Wunderlich, which says risks to LGCY's valuation are skewed downward amid a flat production growth in the absence of acquisitions, widening differentials, and rising costs.

High commodity prices and a competitive M&A market could make the year more challenging for LGCY as it continues to look for third party acquisitions in order to grow; the firm thinks the company offers lower total return prospects than peers.