UPDATE: Deutsche Bank Upgrades Concho Resources to Buy
Deutsche Bank raises its rating to Buy from Hold and increases its price target to $131 from $113 on Concho Resources (NYSE: CXO) on upside drivers likely to offset valuation concerns.
Deutsche Bank says, "Despite a steady stream of positive data points and building momentum in the Permian Basin, pure-play Concho Resources has underperformed fellow Permian-peers by 13% YTD on concerns on valuation, increasing "gassiness" and rising costs. However, this has overshadowed upside drivers in Delaware Basin performance, emerging/improving plays (Hz Wolfcamp, Cline and North Midland Basin) and potential for accretive acquisitions."
CXO closed at $102.08 on Friday.
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