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UPDATE: KeyBanc Capital Markets Downgrades Carrizo Oil & Gas to Hold, Reiterates $28 PT

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In a report published Wednesday, KeyBanc Capital Markets downgraded its rating on Carrizo Oil & Gas (NASDAQ: CRZO) from Buy to Hold, and reiterated its $28.00 price target.

KeyBanc Capital Markets noted, “We view the Company's lack of capital discipline to be harmful to value creation and the resulting free cash flow deficits that we forecast through 2014 (93%/54% outspend in '13/‘14) to expose the Company to excess risk in the event of a depressed commodity price environment given an already over-leveraged balance sheet (3.3x debt/EBITDAX YE12). At 4.8x 2014 EV/EBITDAX, we would prefer higher quality Eagle Ford operators trading at lower multiples (ROSE – 4.1x).”

Carrizo Oil & Gas closed on Tuesday at $22.43.

Latest Ratings for CRZO

DateFirmActionFromTo
Aug 2014Tudor PickeringUpgradesHoldAccumulate
Aug 2014BMO CapitalUpgradesMarket PerformOutperform
Aug 2014KLR GroupUpgradesHoldBuy

View More Analyst Ratings for CRZO
View the Latest Analyst Ratings

Posted-In: KeyBanc Capital MarketsAnalyst Color Downgrades Analyst Ratings

 

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