UPDATE: KLR Group Upgrades Goodrich Petroleum Corporation to Accumulate, Raises PT as TMS Execution Will Evolve

In a report published Tuesday, KLR Group analyst John Gerdes upgraded the rating on

from Hold to Accumulate, and raised the price target from $24.00 to $25.00. In the report, KLR Group noted, “We are upgrading GDP from Hold to Accumulate and increasing our target price $1 to $25 per share following minor model refinements. Since mid-June, GDP has depreciated 30%+ and underperformed the sector by ~25% given less inspiring recent TMS delineation tests. With the share price weakness, our target price now reflects ~25% upside and thus merits an upgrade to Accumulate. Assuming ~$1.2 billion of EV outside of the TMS (~$300 million Haynesville and $900 million Eagle Ford), the market is currently ascribing ~$600 million of value to Goodrich's TMS leasehold, or ~$4,000 per core acre (~150,000 net acres). Our $25 target price implies ~$800 million of TMS value, or ~$5,300 per core acre.” Goodrich Petroleum Corporation closed on Monday at $19.71.