UPDATE: BMO Capital Markets Raises PT to $40 on Carrizo Oil & Gas

BMO Capital Markets raises its price target to $40 on Outperform-rated Carrizo Oil & Gas

on a revised NAV analysis and a pro forma look at the shares following the recent divestiture of certain Barnett Shale properties. BMO Capital Markets notes, "Carrizo sold 35 MMcfe/d of Barnett Shale production for ~$5,400 per flowing Mcfe. The price doesn't raise the class average, but it does replenish liquidity and help close this year's cash flow gap in the way it was meant ($190 mn in cash proceeds; 2012 cash flow gap of ~$163 mn by our estimate). The sale also brightens the spotlight on the company's Eagle Ford Shale asset, attention we believe is deserved given the attractive field-level economics and the higher margin growth this operation is expected to drive (~75% liquids or more)." CRZO closed at $31.22 a share yesterday.