Canaccord Genuity increased its price target on Callon Petroleum (CPE) to $9 from $8 and maintained its "buy" rating on the stock on Friday.
The Natchez, MS-based oil and natural gas company is engaged in the exploration, development, acquisition and production of oil and natural gas properties.
"We were very impressed with the announcement earlier this week that CPE will be able to hit our production growth estimate with just one rig in 2016 (versus two before)," the firm said in an analyst note.
While Canaccord Genuity is not relying on a serious recovery in oil prices in the near term, Callon Petroleum has the flexibility to bring back its second rig quickly should it make sense. The company plans to idle the rig in the first quarter.
Callon Petroleum is well positioned to weather a rough commodity environment, the firm noted.
Callon Petroleum (CPE)
Callon Petroleum (CPE)
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group