UPDATE: Canaccord Genuity Initiates Coverage on Laredo Petroleum Holdings with Buy Rating, $28 PT Following Anadarko Basin Divestiture

In a report published Wednesday, Canaccord Genuity analyst Ipsit Mohanty initiated coverage on Laredo Petroleum Holdings LPI with a Buy rating and $28.00 price target. In the report, Canaccord Genuity noted, “Post the recent divestiture of its Anadarko Basin properties, Laredo Petroleum (LPI) stands, in our opinion, at an inflection point where decades of geological data, science, management experience and capital is focused on one and only one goal: rapid development of the Garden City asset and acceleration of NAV. In our discussion with the company, management has shown tremendous patience in a methodical and almost surgical process of delineating the 87x25-mile area of acreage in the heart of Midland Basin to ensure the best route to maximize asset recovery. This process is nearing the finish line and from here on, ramp up in production is imminent. At this interesting juncture, we initiate LPI with a BUY rating. Our target price of $28 implies 35% upside over 12 months.” Laredo Petroleum Holdings closed on Tuesday at $20.89.