Ahead Of The Bell: Carrizo Downgraded To 'Neutral'

NEW YORK (AP) — After a recent rally, shares of Carrizo Oil & Gas Inc. have climbed high enough, said an analyst as he downgraded the stock.

The independent crude oil and natural gas producer's stock has tripled since mid-March to close at $21.21 on Wednesday.

SunTrust Robinson Humphrey analyst John Gerdes lowered his rating for the stock to "Neutral" from "Buy," noting that it has reached his target price of $21.

Gerdes said he expects Carrizo's capital spending to grow at a scaled-back pace compared to its peer group, consequently slowing the company's production growth from 30 percent this year to 10 percent in 2010.

Gerdes held to his 2009 and 2010 profit estimates of $1.12 per share and $1.64 per share, respectively. Analysts polled by Thomson Reuters expect a 2009 profit of 99 cents per share and a 2010 profit of $1.29 per share.

The company did not provide full-year estimates in its most recent earnings report.