Callon Petroleum (CPE) Upgrades - Nov 10

[dan_s]

The Wall Street Gang that badmouth Callon less than two years ago for their merger with Carrizo are now increasing their price targets.

> JPMorgan analyst Zack Parham raised the price target on Callon Petroleum (NYSE: CPE) to $70.00 (from $57.00) while maintaining a Neutral rating.
> Callon Petroleum price target raised to $70 from $66 at RBC Capital
RBC Capital analyst Scott Hanold raised the firm's price target on Callon Petroleum to $70 from $66 but keeps a Sector Perform rating on the shares after its Q3 earnings beat. The company's accelerated debt reduction due to improving cash margins and higher commodity prices bring forward the timeline for shareholder return conversations and implementation, the analyst tells investors in a research note, adding that these returns could begin in early to mid 2022. Hanold also raises his FY21 EPS view to $9.00 from $8.40 and FY22 view to $15.02 from $14.77 after Callon's results.

Question: CPE is trading at $59.32 at the time of this post. How does an analyst raise his price target by $13/share an rate it a HOLD?

My current valuation of CPE is $88/share, with much more upside if their 2022 guidance confirms my forecast model assumptions.

[Fraser921]

Good points and comments

[dan_s]

Our updated profile on CPE now on the EPG website and will be emailed to all EPG members in the morning.