UPDATE: Bank Of America Downgrades Laredo Petroleum Inc On Reshuffling The Midland Deck

Loading...
Loading...
In a report published Tuesday, Bank of America analyst Jason Smith downgraded the rating on
Laredo Petroleum IncLPI
from Buy to Neutral, and lowered the price target from $34.00 to $28.00. In the report, Bank of America noted, “Although we believe the value of LPI's Midland assets remains intact alongside a move to ‘development mode', we see the lack of financial flexibility to accelerate NAV recognition beyond our estimates as a key investment risk, with net debt to EBITDA pro forma for recent acreage acquisitions at 3.3x. Moreover, compared to other Permian peers, we believe LPI has few near term catalysts with risks rather that longer term production expectations are reset lower at the forthcoming December Analyst Day. While we see upside potential of ~17% to our revised PO of $28, we see other names as better positioned at this time. Downgrade to Neutral.” Laredo Petroleum closed on Monday at $23.88.
Posted In: Analyst ColorDowngradesAnalyst RatingsBank of AmericaJason Smith
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...