Canaccord Genuity Reiterates a 'Buy' on Concho Resources (CXO); Complementary Permian Acquisition
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Price: $87.42 -0.44%
Rating Summary:
21 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Rating Summary:
21 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Trade CXO Now!
Canaccord Genuity reiterates a 'Buy' on Concho Resources (NYSE: CXO) price target of $117.00.
Analyst, John Gerdes, said, "We are maintaining our CXO target price following the acquisition of highly complementary Permian Basin assets. In our view, the deal and related guidance update are a push to valuation. We reiterate our rating and note our ’12 production estimate of 31.1 Mmboe is 4% above guidance. With the acquisition, Concho is spending ~85% beyond cash flow, double the industry outspend. Yet, we see the debt level as sustainable and do not expect equity financing unless Concho eyes another deal. We anticipate Concho’s net debt to trailing 12-month EBITDA ratio should decline from 2.0x at year-end ’12 to 1.8x at the end of ’13."
For an analyst ratings summary and ratings history on Concho Resources click here. For more ratings news on Concho Resources click here.
Shares of Concho Resources closed at $92.02 yesterday, with a 52 week range of $63.20-$116.82.
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Analyst, John Gerdes, said, "We are maintaining our CXO target price following the acquisition of highly complementary Permian Basin assets. In our view, the deal and related guidance update are a push to valuation. We reiterate our rating and note our ’12 production estimate of 31.1 Mmboe is 4% above guidance. With the acquisition, Concho is spending ~85% beyond cash flow, double the industry outspend. Yet, we see the debt level as sustainable and do not expect equity financing unless Concho eyes another deal. We anticipate Concho’s net debt to trailing 12-month EBITDA ratio should decline from 2.0x at year-end ’12 to 1.8x at the end of ’13."
For an analyst ratings summary and ratings history on Concho Resources click here. For more ratings news on Concho Resources click here.
Shares of Concho Resources closed at $92.02 yesterday, with a 52 week range of $63.20-$116.82.
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