UPDATE: Citigroup Raises PT to $18 on LRR Energy on Valuation, Commodity Prices

Citigroup reiterated its Neutral rating on LRR Energy

but increased its price target from $16.50 to $18. Citigroup commented, "The change to our target price primarily reflects the upward adjustment to our target multiple and fine tuning our assumption for commodity prices. Our target price assumes applying an 8.5x trailing EV/EBITDA multiple (i.e. 8.0x previously) to our adjusted EBITDA forecast of $74.1 million over the next twelve months (i.e. on a four quarter rolling basis - 1Q13-4Q13)." LRR Energy closed at $19.33 on Friday.