UBS Downgrades Concho Resources (CXO) to Neutral

August 9, 2013 9:34 AM EDT Send to a Friend
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Price: $114.16 -0.54%

Rating Summary:
    23 Buy, 11 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 7 | Down: 23 | New: 27
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UBS downgraded Concho Resources (NYSE: CXO) from Buy to Neutral with a price target of $103.00 (from $95.00). Analyst Betty Jiang thinks valuation is full.

"We believe the >20% YTD increase in CXO’s share price has largely reflected the positive impact of its competitive well results in Delaware & Midland Basin, increased N. Delaware Basin inventory & de-risking of new exploratory plays. Following NAV update post 2Q ops report, we don't expect to see meaningful NAV revisions until YE'13 inventory update in early '14. We believe shares are fairly valued at 0.95x 2P NAV & 6.8x '14E EV/EBITDX under strip prices while CXO's debt-adjusted growth metrics are broadly in line w/ the oily resource peers," said Jiang.

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 $97.85 yesterday.

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