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Capital One Southcoast Upgrades Callon Petroleum (CPE) to Neutral Following Recent Weakness

June 29, 2009 10:32 AM EDT
CPE Hot Sheet
Rating Summary:
    4 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Capital One Southcoast upgrades Callon Petroleum (NYSE: CPE) from Reduce to Neutral. Price target lowered from $3 to $2.50.

Capital One analyst says, "We believe the pullback in the stock, along with CPE's oil exposure (65% of proved reserves and 50% of current production), point to an upgrade as the company should benefit from significantly increased cash flows due to the rise in oil prices. At the same time, we believe that the NEUTRAL rating is warranted based on the company's debt load and until we get more visibility that all the non-recourse debt related to Entrada has been fully removed from CPE's books."

To see more analyst ratings on CPE Click Here.

Callon Petroleum Company (Callon) is engaged in the exploration, development, acquisition and production of oil and gas properties.

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