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NEW YORK (AP) -- Shares of Petroleum Development Corp. jumped more than 10 percent Tuesday after an analyst recommended buying shares of the independent natural gas producer. SunTrust Robinson Humphrey analyst John Gerdes began coverage of the company Monday afternoon with a rating of "Buy" and a target stock price of $60. That target represents an upside of 48 percent from Monday's closing price. "Given our base case commodity price assumptions ... PETD can appreciate to $60 per share and still deliver a 15 percent per annum return to shareholders," Gerdes wrote. The analyst praised the company's "outstanding exposure" to the U.S. natural gas market. He also noted that the Bridgeport, W.Va.-based company's strategy emphasizes acquisitions and development, and said it retains a multiple-year inventory of reserves in core areas -- mostly the Rocky Mountains and the Appalachian Basin. Shares rose $4.18, or 10.3 percent, at $44.70 in midday trading.
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