UPDATE: ISI Group Upgrades Concho Resources to Outperform on Relative Value

ISI Group raises its rating on Concho Resources

from Perform to Outperform and establishes a price target of $121 on shares. ISI Group says, "We are upgrading shares of Concho Resources, Inc. (CXO) to 1-Rated (Outperform Benchmark) from 2-Rated (Benchmark Perform). We see better relative value now given the recent under-performance and better growth visibility post the 3ROC acquisition. A strong oil hedging position ensures executing on the large drilling inventory in 2013 (~50% at $96/Bbl WTI). At its core, Concho focuses on managing and growing value, which is a fresh distinction from the many “top-line” unit driven producers." CXO closed at $85.12 on Friday.