UPDATE: KLR Group Upgrades Ultra Petroleum

In a report released Friday, KLR Group analyst John Gerdes upgraded Ultra Petroleum (NYSE: UPL) from Accumulate to Buy, while decreasing its price target from $32 to $31.

Analysts at KLR Group are bullish on Ultra Petroleum's allocation of capital spending of nearly 75 percent to four operated rigs in Pinedale field and nearly 20 percent capital allocation dedicated to the Uinta Basin Three Rivers field. KLR Group favors Ultra Petroleum's capital yield around 180 percent, compared to its piers capital yields around 130 percent.

Ultra Petroleum's price target of $31 per share is due to the company's operating expense slightly increasing.