Imperial Capital Lowers Price Target On Goodrich Petroleum As Reduction In Capex Significantly Improves Liquidity

In a report published Monday, Imperial Capital analyst Kim Pacanovsky reiterated an Outperform rating on

, but lowered the price target from $6.00 to $4.00. In the report, Imperial Capital noted, “We are maintaining our Outperform rating on GDP shares, but lowering our one-year price target to $4 from $6, as the shares continue to trade on liquidity concerns. However, decreased capex guidance greatly improves liquidity in 2015. Our price target is about 58% above the share price. On 1/30/15, management provided greater clarity over its 2015 operations by providing reduced 2015 capex guidance between $90 and $100mn (previous guidance was $150mn and $200mn). With $80–100mn of the total budget dedicated to drilling and completion, GDP will run a one-rig program in the Tuscaloosa Marine Shale (TMS).” Goodrich Petroleum closed on Friday at $2.52.