UBS Ups Quicksilver Resources to Buy from Neutral

Says the company's shares have grown significantly cheaper relative to peers since early October

UBS Financial upgraded Quicksilver Resources (KWK ) to buy from neutral, explaining that the company's shares have grown significantly cheaper relative to peers since early October.

Analyst J. David Anderson thinks operational and management-related issues are largely reflected in the company's stock price, while he views its asset base as high-quality with impressive growth potential. He notes that Quicksilver Resources holds acreage positions in two of the more prolific North American resource plays: Canada's Horseshoe Canyon and Barnett Shale in Texas. With 1.3 to 3.3 trillion cubic feet in potential reserves, a 22-year reserve life, 20%+ production growth, and deep drilling inventory, he thinks Quicksilver appears to be a prime acquisition target.

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