Memorial Resource, June gas IPO, gets several bullish ratings

|About: Memorial Resource Developme... (MRD)|By:, SA News Editor

At least seven investment banks initiate coverage on gas producer Memorial Resource Development (MRD +3.2%) with Buy or Outperform ratings, and shares approach their all-time high after the June 13 IPO.

Among the new coverage, BofA/Merrill initiates coverage on MRD with a Buy rating while Wells Fargo starts coverage at Outperform.

In its initial Buy rating and $30 price target, Stifel says MRD's prolific Cotton Valley sand play in north Louisiana's Terryville field could drive its proved net asset value estimate to $40/share at year-end 2016 from $7 at year-end 2013 and annual production growth of 55% during the three-year period (