UPDATE: Imperial Capital Re-Initiates Coverage on Carrizo Oil & Gas on Good Market Position
In a report published Wednesday, Imperial Capital analyst Kim Pacanovsky re-initiated coverage on Carrizo Oil & Gas (NASDAQ: CRZO) with an Outperform rating and $60.00 price target.
In the report, Imperial Capital noted, “We are re-initiating coverage of CRZO with an Outperform rating and a one-year price target of $60, about 17% above the recent share price. Well positioned in the Eagle Ford, Niobrara, and Marcellus/Utica, CRZO's real estate and execution continue to fuel production growth. The company recently raised its outlook for 2014 liquids growth to 50%, which leads to our estimate of EBITDA growth of 28% and year-end debt/EBITDAX of 1.7x (vs. 2.9x as of year-end 2012 and 4.1x as of year-end 2011), indicative, in our view, of CRZO's commitment to improving debt metrics. With its strong production, improved balance sheet, and ample liquidity, and trading at just 5.7x 2014 EV/EBITDAX, we believe CRZO shares are undervalued.”
Carrizo Oil & Gas closed on Tuesday at $51.08.
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