NEW YORK (TheStreet) -- Shares of Laredo Petroleum (LPI) are down 2.88% to $17.56 after BMO Capital Markets downgraded the Tulsa, OK-based oil and gas company to "market perform," and lowered its price target to $20.
Shares do not offer much of a value proposition following 2014 third quarter results, analysts' said.
"[After] 2014 third quarter results, we concluded that the shares do not offer much of a value proposition, a reality we thought would be otherwise given the stage setting (e.g., production corridor building) that could lead to more lasting value creation," analysts' said.
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"What stands out is that the stock doesn't compare favorably to its Permian Basin peers on debt-adjusted measures," analysts' added.
Separately, TheStreet Ratings team rates LAREDO PETROLEUM INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate LAREDO PETROLEUM INC (LPI) a HOLD. The primary factors that have impacted our rating are mixed--some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow."