UPDATE: BMO Capital Markets Downgrades Laredo Petroleum Holdings to Market Perform on NAV Revision

BMO Capital Markets reduced its rating on Laredo Petroleum Holdings

from Outperform to Market Perform and lowered its price target from $27 to $22. BMO Capital Markets commented, "We are downgrading LPI to Market Perform, from Outperform, a move prompted by a revised NAV analysis that yields $22 and supported by concerns over the pace of spending and what it could mean in terms of increased leverage on an already-leveraged balance sheet or a lower planned growth rate, all while still outspending cash flow. Throw on top of this the overhang Warburg presents (~70% ownership) and you have the basis for our less-thanbullish view on the shares today." Laredo Petroleum Holdings closed at $19.94 on Monday.