UPDATE: KLR Group Upgrades Concho Resources

In a note released earlier Tuesday morning, KLR Group analyst, John Gerdes upgraded shares of of Concho Resource, Inc. from Accumulate to Buy and raised the price target from $176 to $185. Gerdes noted that the upgrades comes on the back of a five to 10 percent increase in 2015 forward capital spending. Further, his capital plan assumes a development program in the Permain Basin of approximately 40 rigs. For 2014, Gerdes is predicting ~22 percent growth in production which is at the mid point of guidance. However, in 2016 his production estimate is five percent lower than Concho's goal.