Concho Resources (NYSE:CXO) has its price target reduced by SunTrust

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Updated: 11 June 2019
  • SunTrust reduces price target for Concho Resources (NYSE:CXO) from $150 to $135
  • Analyst Neal Dingmann, however, kept the current Buy rating in place
  • He expects strong increase in free cash flow generation in Q3

SunTrust analyst Neal Dingmann reduced Concho Resources’ price target from $150 to $135 on Tuesday. He also cut his expected EBITDA for 2020 from 7.6 times to 7.0 times, saying that this better reflected the “updated capital and production cadence outlook for the year.”

Dingmann, however, kept his Buy rating on the stocks in place because he is confident that the firm is at a crucial turning point on the way to free cash flow generation, which is expected to rise significantly during the third quarter of this year.