Concho Resources Inc. (CXO) Rating Reiterated by Canaccord Genuity
Concho Resources Inc. (NYSE:CXO)‘s stock had its “hold” rating reissued by equities researchers at Canaccord Genuity in a research note issued on Monday. They currently have a $135.00 target price on the stock. Canaccord Genuity’s price target would indicate a potential downside of 1.43% from the company’s previous close.
The analysts wrote, “We view CXO’s acquisition of ~16K net acres in Lea County positively. The company’s recent Wolfcamp results in the area illustrated the potential of both >1-mile laterals and of the Wolfcamp itself, both of which remain in the relatively early stages of development in New Mexico. The acquisition significantly bolsters CXO’s footprint in that area (Red Hills) and increases its ability to drill >1-mile laterals. Moreover, we believe the company paid a reasonable price. As we wrote last week, however, the valuation premium on CXO holds us back (see page 3 for comps) and we continue to await a better entry point. ~$20K/acre price tag looks quite reasonable While the discount to recent OXY and RSPP Delaware transactions (>$40K/acre) appears massive at first glance, bear in mind that New Mexico acreage prices have not been nearly as lofty as those down in Texas. In our view, that is due both to being in the earlier stages of long lateral development and a permitting regime that does not allow for as fast a D&C pace. While EOG paid <$10K/acre to acquire NM Delaware acreage in September, CXO is acquiring contiguous blocs overlapping its existing southern Lea County leasehold, so a higher per acre valuation makes sense to us. Of the $430M price tag, $150M will be paid in cash while the remainder will be in the form of 2.18M common shares issued to the seller."”
Other equities analysts have also recently issued reports about the company. Citigroup Inc. increased their price objective on Concho Resources from $150.00 to $162.00 and gave the company a “buy” rating in a research report on Friday, August 26th. Johnson Rice began coverage on Concho Resources in a research report on Tuesday, October 4th. They issued an “accumulate” rating on the stock. Jefferies Group set a $123.00 price target on Concho Resources and gave the stock a “hold” rating in a research report on Tuesday, October 18th. Credit Suisse Group AG raised their price target on Concho Resources from $145.00 to $154.00 and gave the stock an “outperform” rating in a research report on Wednesday, August 24th. Finally, Simmons restated a “buy” rating on shares of Concho Resources in a research report on Monday, August 22nd. One research analyst has rated the stock with a sell rating, eight have given a hold rating, fourteen have assigned a buy rating and one has given a strong buy rating to the company. Concho Resources has a consensus rating of “Buy” and a consensus price target of $139.85.
Concho Resources (NYSE:CXO) traded up 5.31% during trading on Monday, hitting $136.96. 1,699,214 shares of the stock traded hands. The firm’s 50-day moving average is $134.29 and its 200-day moving average is $126.85. Concho Resources has a 12 month low of $69.94 and a 12 month high of $143.60. The stock’s market cap is $19.31 billion.
Concho Resources (NYSE:CXO) last announced its earnings results on Tuesday, November 8th. The company reported $0.32 earnings per share for the quarter, beating the consensus estimate of $0.19 by $0.14. Concho Resources had a positive return on equity of 0.93% and a negative net margin of 89.23%. The firm earned $430.55 million during the quarter, compared to the consensus estimate of $69.10 million. During the same quarter in the prior year, the company earned $0.33 EPS. The firm’s revenue for the quarter was down 7.1% compared to the same quarter last year. On average, analysts forecast that Concho Resources will post $0.43 EPS for the current year.
Several hedge funds and other institutional investors have recently made changes to their positions in CXO. Advisor Group Inc. purchased a new stake in shares of Concho Resources during the second quarter worth approximately $102,000. University of Texas Investment Managment Co. purchased a new stake in shares of Concho Resources during the second quarter worth approximately $110,000. Checchi Capital Advisers LLC boosted its stake in shares of Concho Resources by 1.7% in the second quarter. Checchi Capital Advisers LLC now owns 1,107 shares of the company’s stock worth $132,000 after buying an additional 18 shares during the period. Synovus Financial Corp purchased a new stake in shares of Concho Resources during the third quarter worth approximately $139,000. Finally, Cypress Capital Management LLC WY purchased a new stake in shares of Concho Resources during the third quarter worth approximately $158,000. Institutional investors own 92.22% of the company’s stock.
About Concho Resources
Concho Resources Inc is an independent oil and natural gas company engaged in the acquisition, development and exploration of oil and natural gas properties. The Company’s operations are focused in the Permian Basin of Southeast New Mexico and West Texas, an onshore oil and natural gas basin in the United States.
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