UPDATE: Topeka Capital Markets Raises PT on Laredo Petroleum Following Share Pricing Announcement

In a report published Tuesday, Topeka Capital Markets analyst Gabriele Sorbara reiterated a Hold rating on Laredo Petroleum LPI, and raised the price target from $25.00 to $27.00.

In the report, Topeka Capital Markets noted, “Last night, LPI priced 13.0 million shares (potentially 14.95 million shares including the overallotment) of common stock at $23.75, representing 10.0% dilution (11.6% with overallotment). Gross proceeds from the offering (excluding the overallotment) were $308.75 million. Additionally, Warburg Pincus LLC and management sold 3.0 million shares (potentially 3.45 million including the overallotment) at $23.75. The proceeds raised by LPI are expected to fund its exploration and development activity, primarily in the Midland Basin. We view the equity raise as positive, as it helps fund a portion of the capital outspend through 2014. While a positive announcement, we see limited upside at the current valuation. We reaffirm our Hold rating, but are raising our PT to $27 from $25, given our increased RNAV, which is based on our increased comfort level around LPI's balance sheet and ability to bring forward its NAV.”

Laredo Petroleum closed on Monday at $24.35.