It is Time to Underweight Laredo Petroleum Holdings Inc (NYSE:LPI), JP Morgan Says. Stock May Be Worth $9.50

Share

Why Has JP Morgan Given Laredo Petroleum Holdings Inc (NYSE:LPI) a $9.50 Price Target

Investment analysts at JP Morgan initiated coverage on Laredo Petroleum Holdings Inc (NYSE:LPI) with a key Underweight rating. The price target for LPI is $9.50. It gives a possible upside of 2.15% from firm’s last stock close price.

From a total of 22 analysts covering Laredo Petroleum Holdings Inc (NYSE:LPI) stock, 4 rate it a ”Buy”, 2 a “Sell”, and 16 a ”Hold”. This means that 18% of the ratings are positive. The highest target price is $20 while the lowest target price is $7. The mean of all analyst targets is $12.09 with a 25.81% above today’s ($9.3) stock price. Laredo Petroleum Holdings Inc was the topic of 24 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. KLR upgraded shares on December 7 to “Hold” rating. IBERIA downgraded shares to “Sector Perform” rating and $12 target share price in a report from an October 13. Deutsche Bank initiated LPI stock in a recent report from December 2 with “Hold” rating. Iberia Capital Partners downgraded the rating on October 13. Iberia Capital Partners has a “Sector Perform” rating and a $12 price target on shares. Finally, KLR Group downgraded the stock to “Reduce” rating in a report issued on an October 15.

The stock increased 6.29% or $0.55 on December 8, striking $9.3. Approximately shares of stock traded hands. Laredo Petroleum Inc (NYSE:LPI) has declined 35.10% since May 6, 2015 and is downtrending. It has underperformed by 34.31% the S&P500.

The overall sentiment of institutions has decreased to 0.93 in Q2 2015. Its down 0.09, from 1.02 in 2015Q2. The ratio worsened, as 38 institutions have sold all the shares of Laredo Petroleum Inc that they owned while 51 funds have taken shares off the table. 24 funds have purchased shares for the first time while 59 added to their positions. These institutions now hold 232.73 million shares or 2.70% less than the 239.19 million shares they owned in 2015Q2.

The Fund Warburg Pincus Llc currently is holding shares equating to 10.4% of its total portfolio in Laredo Petroleum Inc representing a total of 87.67 million shares. Another fund,Sailingstone Capital Partners Llc, is holding a total of 28.57 million shares equating to 8.29% of their holdings. Additionally, Caymus Capital Partners L.P. has a 2.57 million share stake in Laredo Petroleum Inc which represents 4.91% of their total portfolio. The Fund, Encompass Capital Advisors Llc, based out of New York, has also built up a stake in the stock, which represents a total of 4.24% of their total portfolio. Finally Alta Advisers Ltd, a fund which is based in the state of United Kingdom reported a total holdings of 225,029 shares.

Laredo Petroleum, Inc. is an independent energy company, focused on the acquisition, exploration and development of oil and natural gas properties primarily in the Permian Basin in West Texas. The company has a market cap of $1.87 billion. The Company’s Permian Basin is comprised of several distinct geological provinces, including the Midland Basin to the east, the Delaware Basin to the west and the Central Platform in the middle. It currently has negative earnings. The Permian Basin is located in West Texas and Southeastern New Mexico, where the Company has assembled approximately 196,683 net acres.

According to Zacks Investment Research, “Laredo Petroleum Holdings, Inc. is engaged in the exploration, development and acquisition of oil and natural gas properties in the Permian and Mid-Continent regions of the United States. Laredo Petroleum Holdings, Inc. is headquartered in Tulsa, Oklahoma.” Get a free copy of the Zacks research report on Laredo Petroleum Inc (LPI).

COMMENTS: