NEW YORK (TheStreet) -- Shares of Resolute Energy (REN) are up by 43.42% to $5.45 on heavy trading volume on Monday afternoon, as Wunderlich raised its rating on the company to "buy" from "hold" this morning.
So far today, 3.01 million shares of Resolute Energy have traded vs. its average of 146,429 shares.
The firm raised the Denver-based independent oil and gas company's price target to $8 from $4.
This upgrade is a result of Resolute Energy's announcement last week that detailed beneficial updates for the company, such as enormous new wells in the Delaware region.
Resolute Energy is in a good position whether oil prices maintain their current rates or increase, because it has drilling locations that "have just seen their EURs move up over 2 mmboe per well that should drive continued production and reserve growth," Wunderlich said.
The company announced fiscal 2016 second quarter results of 15,000 boe per day, which beat estimates of about 11,000 boe per day and indicates 70% quarter over quarter growth.
Resolute Energy sold a midstream asset in the Delaware region that will bring in more than $35 million in cash, Wunderlich wrote. "With no bank debt currently, REN can do many different things with this money including adding activity or looking to pay down other debt."
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate RESOLUTE ENERGY CORP as a Sell with a ratings score of E+. This is based on a variety of negative investment measures, which should drive this stock to significantly underperform the majority of stocks that we rate. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and weak operating cash flow.