Canaccord Says Approach Resources (AREX) Stock Is Fully Valued
In a research note released today, Canaccord Genuity analyst Stephen Berman maintained a Hold rating on Approach Resources Inc. (NASDAQ:AREX) with an $8.00 price target, which represents a slight downside potential from current levels.
Berman noted, “AREX is a pure play Permian name with ~137K mostly contiguous net acres in the southern Midland Basin. The company does boast a relatively solid balance sheet and liquidity position. However, the shares are close to fully valued in our view after the recent run up and we remain on the sidelines.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Stephen Berman has a total average return of -15.1% and a 34.3% success rate. Berman has a -18.6% average return when recommending AREX, and is ranked #3481 out of 3504 analysts.