Canaccord Genuity Raises Price Target on Concho Resources (CXO) Following Acuisition of Midland Acreage
- Wall St. set to open lower, weighed down by GE
- British American Tobacco Offers to Acquire Remaining Shares of Reynolds American (RAI) for $56.50/Share
- General Electric (GE) Tops Q3 EPS by 2c; Updates FY16 EPS Outlook
- Microsoft (MSFT) Tops Q1 EPS by 8c
- Pre-Open Stock Movers 10/21: (ALKS) (RAI) (PFPT) (MSFT) Higher; (SGY) (TWLO) (RRGB) Lower (more...)
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
Canaccord Genuity reiterated a Hold rating on Concho Resources (NYSE: CXO), and raised the price target to $120.00 (from $104.00), following the company's acquisition of quality Midland acreage. The acquired leasehold sits mostly in southwest Martin and southeast Andrews Counties, a core area of the Midland Basin.
Analyst Sam Burwell commented, "CXO's acquisition of Reliance Energy's ~40K net acres implies ~$28K/flowing Boe, a bit below both SM's acquisition in Howard and PE's in Glasscock. Between the followon offering and shares issued to the sellers, the acquisition will be completely equity funded. Given that we assume three incremental rigs on the new acreage in 2017, we see the deal as accretive. In terms of value impact, we view the ~20% growth guidance for 2017 as the bigger near-term positive as that level of growth makes CXO significantly less expensive. In our view, however, we still believe shares are fully valued at these levels."
Shares of Concho Resources closed at $131.78 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Stifel Upgrades PayPal (PYPL) to Buy Following 'Solid' Q3 Results
- Imperial Capital Raises Price Target on American Airlines (AAL) Following 3Q EPS Beat
- Maxim Integrated Products (MXIM): Chip Recovery Has Begun - Wells Fargo
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change, Mergers and Acquisitions
Related EntitiesCanaccord Genuity, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!