Callon Petroleum is a Natchez, MS-based oil and natural gas company.
The price target "implies 26% upside potential to the current price compared with the group that reflects 11% median upside potential," Credit Suisse analysts explained in a note released this morning.
"Given the rich multiples that CPE's core peer group trades at, the company's discounted valuation offers investors an attractive opportunity to gain exposure to the core of the Midland Basin," analysts added.
The company acquired assets that doubled its acreage in the Midland Basin to approximately 33,000 net acres, providing Callon Petroleum "with the runway to deliver scalable long-term growth as oil prices recover," analysts added.
Shares of Callon Petroleum closed down by 0.27% to $11.12 on Tuesday.
Separately, Callon Petroleum has a "sell" rating and a letter grade of D+ at TheStreet Ratings because of the company's deteriorating net income, disappointing return on equity, generally high debt management risk and feeble earnings per share growth.
You can view the full analysis from the report here: CPE
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.