UPDATE: JP Morgan Lowers PT on Cimarex Energy to $55.50

J.P. Morgan reiterates an Overweight rating on Cimarex Energy

and decreases its price target from $86.50 to $55.50. J.P. Morgan notes, “We are lowering our Dec-12 price target to $55.50 from $86.50. Though our current JPM NAV declined less than 5%, NYMEX NAV dropped by over 30% (or by around $20/share). The NYMEX long-term WTI oil price we are using in our model is $84/Bbl, below the prior long-term oil price, from mid-March, of $100 (we still are using $100 long-term oil in our JPM deck). The E&Ps are trading, and likely will continue to trade, closer to NYMEX NAV than JPM NAV. Therefore, whenever possible, we are using NYMEX NAV as the basis for our price targets instead of JPM NAV. Our price target for XEC represents 115% of our NYMEX NAV at YE12, in line with where our group is trading.” XEC closed at $48.68 on Monday.