UPDATE: Credit Suisse Initiates Concho Resources at Neutral; Growth Priced In

Credit Suisse initiated coverage on Concho Resources

with a Neutral rating and a $94.00 price target. Credit Suisse commented, "We initiate coverage of Concho with a Neutral rating and a target price of $94, assuming parity with our NAV. CXO has utilized an acquisition strategy to build a high-quality Permian pure-play, which should deliver top quartile oil production growth at strong margins. We believe the current premium valuation largely discounts CXO's growth prospects in its three core plays: the Yeso, Wolfberry, and Bone Spring. A potential catalyst for rerating is horizontal development outside of its core, but our analysis of this acreage suggests CXO's non-core position has not yet been de-risked." Concho Resources closed at $96.16 on Tuesday.