Seeking Alpha

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

  • 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.
Comments (1)
  • I want to thank Wunderlich for this opportunity to add more LGCY at a lower price, which I did today!
    20 Feb, 05:54 PM Reply Like
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