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UPDATE: Credit Suisse Initiates Concho Resources at Neutral; Growth Priced In

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Credit Suisse initiated coverage on Concho Resources (NYSE: CXO) with a Neutral rating and a $94.00 price target.

Credit Suisse commented, "We initiate coverage of Concho with a Neutral rating and a target price of $94, assuming parity with our NAV. CXO has utilized an acquisition strategy to build a high-quality Permian pure-play, which should deliver top quartile oil production growth at strong margins. We believe the current premium valuation largely discounts CXO's growth prospects in its three core plays: the Yeso, Wolfberry, and Bone Spring. A potential catalyst for rerating is horizontal development outside of its core, but our analysis of this acreage suggests CXO's non-core position has not yet been de-risked."

Concho Resources closed at $96.16 on Tuesday.

Latest Ratings for CXO

DateFirmActionFromTo
May 2015RBC CapitalMaintainsOutperform
Apr 2015JefferiesMaintainsBuy
Apr 2015NomuraInitiates Coverage onBuy

View More Analyst Ratings for CXO
View the Latest Analyst Ratings

Posted-In: Credit SuisseAnalyst Color Initiation Analyst Ratings

 

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