Wunderlich Securities Lowers GeoMet PT To $1.00 Per Share

Natural gas prices continue to be under pressure given that excess supply/lack of incremental demand and continued drilling expected in the Haynesville, Marcellus, and other areas in order to hold acreage could cause prices to remain weak for some time, Wunderlich Securities reports. As a result, Wunderlich Securities said that it is lowering its price target on GeoMet, Inc. GMET to $1.00 per share from $3.00; which is the result of changing our valuation method to cash flows from net asset value (NAV). “We remain confident in our NAV of $3.00 per share, but given the current market conditions we believe the market for natural gas focused transactions is low; therefore, we switch to a cash flow valuation,” Wunderlich Securities writes. “We maintain our Buy rating on GMET shares.” GeoMet currently trades at $0.70.