UPDATE: Wunderlich Securities Initiates Coverage on Seventy Seven Energy with Buy Rating, $34 PT on Compelling Value

In a report published Friday, Wunderlich Securities analyst Jason A. Wangler initiated coverage on

with a Buy rating and $34.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage on Seventy Seven Energy Inc. (SSE) with a Buy rating and $34 price target following the company's spin-off from Chesapeake Energy (CHK-$29.02, Buy) on June 30, which made it a stand-alone, publicly traded company. We believe SSE's business model provides good stability through its relationship/agreement with CHK as SSE looks to grow its business lines by aggressively adding customers now that it is a stand-alone entity. With equipment and capabilities in many active unconventional basins that include land drilling, fracture stimulation, oilfield rentals, and oilfield trucking we feel SSE is in the right segments to take advantage of a robust services market as it looks to expand its presence in the oilfield. We are therefore initiating coverage with a Buy rating.” Seventy Seven Energy closed on Thursday at $25.05.