UPDATE: Mizuho Securities Downgrades Laredo Petroleum On Lower Price Outlook

In a report published Tuesday, Mizuho Securities analyst Jeffrey Connolly downgraded the rating on

from Buy to Neutral, and lowered the price target from $24.00 to $10.00. In the report, Mizuho Securities noted, “We are downgrading LPI to Neutral from Buy and cutting our price target to $10/share from $24/share based on our lower outlook for crude oil prices and concerns about the balance sheet. We are lowering our 4Q14 and 2014 estimates, as well. While we see upside to LPI's current price based on our NAV, the balance sheet is stretched too thin, and risk is to the downside for estimates. We forecast net debt to EBITDA increases to 4.0x at YE15 from 3.4x at YE14, assuming a relatively flat capital budget (~$1.0 bn excluding acquisitions) year-over-year.” Laredo Petroleum closed on Monday at $9.89.