UPDATE: Canaccord Assumes Coverage on Concho Resources on Market Leader Position

In a report published Tuesday, Canaccord Genuity analyst Ipsit Mohanty assumed coverage on

with a Hold rating and $100.00 price target. In the report, Canaccord Genuity noted, “We believe CXO can only be matched by XEC in its knowledge of the complex, multi-stratigraphic Delaware Basin. Like XEC, CXO has led the learning curve in its understanding of the play, as it has developed the Avalon, Wolfcamp, and Brushy Canyon shale plays. It has drilled more than ~180 wells in the Delaware Basin, including 155 wells in the Bone Spring and 22 wells in Wolfcamp. Through a series of acquisitions, CXO has the scale to meaningfully exploit Wolfcamp. Now, with the intention to accelerate the horizontal drilling program in the Midland Basin from two to four rigs, Midland could join Delaware as the next growth engine for CXO.” Concho Resources closed on Monday at $100.98.