Imperial Capital Raises Price Target on Carrizo Oil & Gas (CRZO) Following 1Q Earnings Beat

Imperial Capital reiterated an Outperform rating on Carrizo Oil & Gas (NASDAQ: CRZO), and raised the price target to $39.00 (from $30.00), following the company's 1Q earnings report. The company reported EPS of $0.16 the consensus estimates of $0.13. The company’s EBITDA of $92.5mn beat the consensus of $84.7mn.

Analyst Kim Pacanovsky commented, "We are maintaining our Outperform rating on CRZO shares but are increasing our one-year price target to $39 from $30, about 20% above the recent share price. On 5/4/16, CRZO released 1Q16 results. We believe that CRZO remains one of the most attractive smid-cap (small to mid cap) E&Ps and at 8.5x 2016 EV/EBITDA, the shares are trading at a noticeable discount to many of its less well-capitalized peers. By gaining further drilling and cost efficiencies in the Eagle Ford, CRZO now plans to drill, but not immediately complete, additional wells within its previously issued capex guidance rather than focus on completing its sizeable DUC inventory. Numerous catalytic events should come to light towards the end of the summer as its stagger-stack test results should be revealed as well as potential results from another Permian well. With the Eagle Ford falling down the pecking order for numerous liquidity constrained companies, we expect CRZO to be active in the M&A market and could expand its Eagle Ford footprint with a sizeable acquisition."

For an analyst ratings summary and ratings history on Carrizo Oil & Gas click here. For more ratings news on Carrizo Oil & Gas click here.

Shares of Carrizo Oil & Gas closed at $32.41 yesterday.

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