Goldman Sachs Reiterates Buy on Laredo Petroleum Holdings on 4Q2012 EBITDA, Adjusted EPS
In a report published Wednesday, Goldman Sachs analyst Brian Singer reiterated his Buy rating and $25.00 price target on Laredo Petroleum Holdings (NYSE: LPI).
In the report, Singer noted, “LPI reported 4Q2012 EBITDA/adjusted EPS of $107 mn/$0.11 vs. our $114 mn/$0.09 and consensus $116 mn/$0.11. Exhibit 2 has a comparison of reported data versus our estimates. We update 2013-15 EPS estimates to $0.82/$1.01/$1.31 from $0.76/$1.07/$1.38 on production/costs...We see multiple expansion with greater confidence in rising resource life from the above. LPI shares have materially underperformed Permian peers (CXO, PXD as examples) due to concerns over an ongoing funding gap and potential primary/secondary equity issuance. While we acknowledge these risks, we believe shares can outperform as we are in the early phase of a period when prospectivity/resource estimates for LPI's acreage are revised materially higher and LPI shows strong sequential oil growth and margins.”
Laredo Petroleum Holdings closed on Tuesday at $18.83.
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