UPDATE: Bank Of America Reiterates On Continental Resources As Management Targets Appear Out Of Date

In a report published Monday, Bank of America analyst Doug Leggate reiterated a Buy rating on Continental Resources CLR, and raised the price target from $170.00 to $185.00. In the report, Bank of America noted, “A week on the road with CLR in what was management's first ever trip to Europe had one simple message: on multiple levels, risks to estimated total resource, production targets and ultimately cash flow appear skewed higher versus guidance that is almost two years old. Specifically, discussions with management centered on two issues: ongoing down spacing and upsize frac tests in the ND Bakken and the move to full development in the SCOOP. While management did not discuss specifics, confirmation of 3rd party analogs and critically, a subtle but steady increase in declared acreage in the SCOOP leads us to conclude management's drilling backlog declared in October 2012 may no longer be reasonable.” Continental Resources closed on Friday at $156.25.