UPDATE: SunTrust Robinson Humphrey Upgrades Concho Resources on Multiple Positive Factors
In a report published Friday, SunTrust Robinson Humphrey analyst Ryan Oatman upgraded the rating on Concho Resources (NYSE: CXO) from Neutral to Buy, and raised the price target from $110.00 to $145.00.
In the report, SunTrust Robinson Humphrey noted, “We are upgrading CXO from Neutral to Buy as 1) it has lagged some Permian peers and trades at a substantial discount to them, 2) is finally generating much-needed and well-deserved ‘buzz' on its Delaware Basin properties and 3) has laid out a bold plan to grow beyond our prior expectations. We boost our target on the stronger growth outlook and deeper Midland Basin inventory following industry Upper Spraberry and Wolfcamp D tests. Specifically, our target rises from $110 (6.25x 2015E CFPS of $17.62 previously) to $145 (6.75x 2015E CFPS of $21.48).”
Concho Resources closed on Thursday at $105.80.
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