UPDATE: Goldman Sachs Initiates Buy, $28 Target on Laredo Petroleum Holdings

Goldman Sachs initiates coverage on Laredo Petroleum Holdings LPI with a Buy rating and a price target of $28 a share reflecting oil price leverage, increased via Wolfcamp/Cline shale plays. Goldman Sachs says, "We initiate coverage of Laredo Petroleum with a Buy rating and a 6-month target price of $28 (26% potential upside). We believe LPI shares offer investors an attractive opportunity to gain exposure to the emerging horizontal Wolfcamp/Cline shale plays in the Permian Basin. We have a favorable view on these plays and we believe we are in the early phases of a period when prospectivity/resource estimates for these plays get revised materially higher. We believe investors will look past LPI's expected high spending levels relative to cash flow in a rising oil price environment due to its top-tier production growth, margins and returns." LPI closed at $22.27 a share on Monday.