Canaccord Genuity Reiterates a 'Buy' on Concho Resources (CXO); Best Permian Idea
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Price: $65.60 --0%
Rating Summary:
28 Buy, 15 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 19
Rating Summary:
28 Buy, 15 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 19
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Canaccord Genuity reiterates a 'Buy' on Concho Resources (NYSE: CXO) price target of $127.00.
Analyst, John Gerdes, said, "CXO has almost 30% upside potential to our target, almost 20 percentage points more than Permian rival PXD. Our proprietary analysis of development capital intensity, price realizations and operating costs suggests a typical Concho well generates a higher return than a typical Pioneer well...Additionally, our CXO target is likely conservative as we model the company spending only 10% beyond cash generation this year while Pioneer/the sector outspends cash flow ~30%. Greater organic capital spending would be accretive to our target. Notably, our ’12 production expectation of 29.1 Mmboe is 2% above company guidance."
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 $99.63 yesterday.
Analyst, John Gerdes, said, "CXO has almost 30% upside potential to our target, almost 20 percentage points more than Permian rival PXD. Our proprietary analysis of development capital intensity, price realizations and operating costs suggests a typical Concho well generates a higher return than a typical Pioneer well...Additionally, our CXO target is likely conservative as we model the company spending only 10% beyond cash generation this year while Pioneer/the sector outspends cash flow ~30%. Greater organic capital spending would be accretive to our target. Notably, our ’12 production expectation of 29.1 Mmboe is 2% above company guidance."
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 $99.63 yesterday.
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