UPDATE: BMO Capital Markets Upgrades Goodrich Petroleum to Outperform on Risk/Reward
BMO Capital Markets upgraded Goodrich Petroleum Corporation (NYSE: GDP) from Market Perform to Outperform and raised the price target from $10.00 to $11.00.
BMO Capital Markets noted, "We believe the cleansing the stock has suffered presents a favorable risk/reward in which to gain exposure to exploration efforts targeting the Tuscaloosa Marine Shale (TMS), both company operated and industry driven. We see a firmer backstop on valuation today to make the recommendation investors step out on the risk curve. To this we add an Eagle Ford Shale-driven 2013 game plan that we believe carries little risk of negative surprises and further isolates the TMS as the chief risk to our call. What's prompted us to make this move today is our expectation that TMS-related news on the horizon may not be negative."
Goodrich Petroleum closed at $9.65 on Friday.
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