UPDATE: Canaccord Genuity Reiterates Buy Rating, Raises PT on Concho Resources on Higher Capital Productivity/Oil Composition, Lower Operating Expense

In a report published Monday, Canaccord Genuity reiterated its Buy rating on Concho Resources

, and raised its price target from $110.00 to $115.00. Canaccord Genuity noted, “We are increasing our target price $5 to $115 per share due to slightly higher capital productivity/oil composition and lower operating expense. Our '13 production outlook of 34.2 Mmboe is slightly above the midpoint of company guidance (33.4-34.8 Mmboe). To continue to improve capital efficiency, Concho is increasingly emphasizing horizontal development across the company's Permian Basin leasehold with the exception of the vertical Wolfberry play and core vertical Yeso development. In '13, at least half the company's planned 30-rig drilling program will conduct horizontal operations.” Concho Resources closed on Friday at $94.94.