New Source Energy reiterated Buy, target raised to $30 at Wunderlich

|About: New Source Energy Partners LP (NSLPQ)|By:, SA News Editor

New Source Energy (NSLP +0.3%) is reiterated with a Buy rating with a higher price target of $30, up from $28, at Wunderlich,

The firm says that although NSLP is 90% drawn against its $102M credit facility, it expects the company to issue long-term debt to balance its capital structure.

Based on NSLP's estimates, the company should have a strong coverage of more than 1.5x in H2, which includes a modest 1% quarterly growth in distributions, and puts it in a favorable position for future M&As.