UPDATE: BMO Capital Markets Reiterates Outperform Rating, Lowers PT on Berry Petroleum Company

In a report published Monday, BMO Capital Markets reiterated its Outperform rating on Berry Petroleum Company

, but lowered its price target from $45.00 to $40.00. BMO Capital noted, “We lowered our estimates on a weak 2013 outlook. We're often asked about the balance sheet, but don't view this as a concern as 1) Berry is spending to cash flow in 2013, 2) liquidity is $700mm, 3) production is well hedged, and 4) the revolver doesn't have an EBITDAX test. That said, hedges only go so far in protecting equity value which is only ~50% of EV resulting in high leverage to oil prices.” Berry Petroleum Company closed on Friday at $32.78.