J.P. Morgan Resumes Coverage on EXCO Resources at Neutral

J.P. Morgan is out with its report today on EXCO Resources

, resuming XCO at Neutral. In a note to clients, J.P. Morgan writes, "We were restricted on EXCO Resources due to J.P. Morgan's role as a financial advisor for the proposed transaction announced November 1, 2010. Now that we are no longer restricted, we are reinstating our previous Neutral rating. Our YE12 price target is $27. Our prior price target of $21 was for YE10. The stock looks cheap relative to the group and its gas-weighted peers. Though the valuation looks attractive, the stock likely will trade in line with the group until the market gets more comfortable with the near-term impact from the amine plant shut ins and the implications of the unsuccessful management-led buyout." At the time of posting, shares of XCO were trading pre-market at $15.71, down 0.88% from Friday's close.