UPDATE: Canaccord Genuity Downgrades Matador Resources Co. to Hold, Reiterates $21 PT Following Global Resource Conference

In a report published Wednesday, Canaccord Genuity analyst Ipsit Mohanty downgraded the rating on Matador Resources Co. MTDR from Buy to Hold, but reiterated the $21.00 price target. In the report, Canaccord Genuity noted, “Mr. Craig Adams (EVP Land & Legal) and Mr. Ryan London (VP and general mgr.) presented at our Global Resource Conference last week. MTDR continues to impress operationally in the Eagle Ford as it lowers well costs through pad drilling, reduced frac cost, improvement in well design, etc. Moving from pad drilling to batch drilling is expected to lower costs further. In addition, the prospect of downspacing in the Eagle Ford going forward could potentially double drilling inventory. But we believe all of the above have been noticed by the Street, as MTDR's stock has gone up ~150% YTD. The next leg of growth comes from the Delaware, but in our understanding, MTDR will present meaningful updates only in December at its analyst day.” Matador Resources Co. closed on Tuesday at $20.28.