The firm cited the company's strong performance and noted Synergy's Middle Core wells have outperformed expectations. Stifel also said Synergy has pulled back more than 21% in the last month, compared to a 13% average pullback in peer stocks.
Stifel expects 109% year-over-year production growth in 2015; however, the firm cautioned a Nov. 2014 vote to put tighter regulations on Colorado's oil and gas production has weighed on the stock.
The stock was up 16.07% to $11.95 at 2:11 p.m. More than 1.4 million shares compared to the average volume of 838,048.
Separately, TheStreet Ratings team rates SYNERGY RESOURCES CORP as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate SYNERGY RESOURCES CORP (SYRG) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."