UPDATE: Imperial Capital Initiates Concho Resources at Outperform; Permian Basin Pure Play

Imperial Capital initiated coverage on Concho Resources Inc.

with a Outperform rating and a $105.00 price target. Imperial Capital commented, "CXO is a pure-play, oil-focused Permian Basin oil and gas producer benefiting from strong production growth, long-lived reserves, a low-cost structure, and low-risk production and growth opportunities. CXO remains committed to rate-of-return driven growth, reinvesting cash flow into its highest margin plays. Additionally, as one of the largest operators in the Basin, CXO is well positioned to participate in many of the Basin's emerging horizontal plays should returns so justify." Concho Resources closed at $87.01 on Wednesday.