Analyst Actions: Concho Resources Initiated at Neutral, TP of $94 at Credit Suisse; Shares Down 2%

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Coverage of Concho Resources Inc. ( CXO ) has been initiated by analysts at Credit Suisse with a Neutral rating and a price target of $94 a share

"CXO has utilized an acquisition strategy to build a high-quality Permian pure-play, which should deliver top quartile oil production growth at strong margins," said Credit Suisse.

"We believe the current premium valuation largely discounts CXO's growth prospects in its three core plays: the Yeso, Wolfberry, and Bone Spring. A potential catalyst for rerating is horizontal development outside of its core, but our analysis of this acreage suggests CXO's non-core position has not yet been de-risked."

Shares of CXO are down 1.55% to $94.67 in afternoon trade, amid a 52-week range of $76.17 - $116.82.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

Referenced Stocks: CXO

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