Concho Resources (CXO) Update - July 24

[dan_s]

CXO is the only Sweet 16 company that is trading below where it was trading on April 10. I have looked at it closely and I cannot find anything to explain why it is trailing the peer group. Apparently neither can any other energy sector analysts; even those using much lower oil prices in their stock valuations.

CXO is trading at $53 today.

Since mid-July eight Wall Street analysts have updated their reports and price targets for CXO.
Their valuations range from $63 to $82, with an average of $73.50
My valuation is $75.

Concho has a high percentage of their 2020 oil production hedged at ~$57/bbl; locking in cash flow from operations of more than $2.2 Billion.
On April 30 they reduced this year's capex budget to $1.6 Billion, so they are generating a lot of free cash flow from operations.

Concho is a "Screaming Takeover Target" at today's share price. If another major is looking for a sizable merger candidate, Concho is on their target list.