Market Overview

UPDATE: Goldman Sachs Upgrades Concho Resources to Buy, Reduces PT to $111

Related CXO
UPDATE: KLR Group Upgrades Concho Resources
Canaccord Initiates Coverage On Exploration & Production Sector
Permian Oil Surge Creates Need for Pipelines (Fox Business)

Goldman Sachs upgraded Concho Resources Inc. (NYSE: CXO) from Neutral to Buy, but reduced the 6-month price target to $111 from $112.

Goldman Sachs noted, "CXO currently trades at 6.4x/5.3x 2013E/14E EV/EBITDA, vs. 5.1x/4.7x average for peers. In our view, the premium is justified given CXO's superior oil growth/returns vs. peers and strong Delaware Basin results which raise confidence in CXO's resource life. We highlight that on 2016 estimates, valuation is at par with peers. We see 38% upside to our $111 DCF-/multiplesbased 6-month target price, lowered from $112 on lower EBITDA (we update 2012E -14E EPS after 3Q results on changes to production/costs/prices)."

Concho Resources closed at $80.40 on Thursday.

Latest Ratings for CXO

DateFirmActionFromTo
Aug 2014KLRUpgradesAccumulateBuy
Aug 2014Stephens & Co.UpgradesEqual-weightOverweight
Aug 2014Raymond JamesMaintainsOutperform

View More Analyst Ratings for CXO
View the Latest Analyst Ratings

Posted-In: Goldman SachsAnalyst Color Upgrades Analyst Ratings

 

Related Articles (CXO)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters