NEW YORK (TheStreet) -- Laredo Petroleum (LPI) shares are down -1.3% to $23.16 after being downgraded to "hold" from "buy" by analysts at Canaccord Genuity (CCORF) on Wednesday.
The downgraded outlook stems from the firm's view of the declining impact of the Permian Basin oil exploration in the U.S. southwest on equity values.
"New delineation results appear to be having less and less of an impact on Permian equity values. The decline in relevance may be related to the wide range of possible well count, spacing assumption and ultimate wellhead economic outcomes... Declining share prices could be an indication that the market is nearing saturation for new Permian-linked equity," said analysts at the firm.
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TheStreet Ratings team rates LAREDO PETROLEUM INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate LAREDO PETROLEUM INC (LPI) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."