NEW YORK (TheStreet) -- RATINGS CHANGES
Callon Petroleum (CPE - Get Report) was started at overweight by Keybanc, which set an $11 price target, saying that Callon has a slightly lower growth rate and more leverage than its peers, but that the stock is overly discounted in the valuation.
Diamondback Energy (FANG - Get Report) was started at overweight by Keybanc, which set a $91 price target, saying that the company's true growth potential is not reflected in the shares, especially considering Keybanc's 2016 production estimate is 19% above consensus.
King Digital (KING) was downgraded to neutral by JP Morgan, which set a $17 price target, saying the company's risk profile is increasing.
Laredo Petroleum (LPI - Get Report) was started at sector weight by Keybanc, which didn't give a price target, saying the valuation is full. Laredo's field-level returns are challenged in a sub-$65 a barrel environment, which results in a deteriorating leverage position over the next several years that makes it more difficult to maintain a positive growth profile, Keybanc said.
Parsley Energy (PE - Get Report) was started with an overweight rating by Keybanc, which set a $21 price target, saying the stock trades at a discount to Permian peer group. Parsley Energy's has good exposure to the core of the Wolfcamp A&B that has continued to exhibit improvements and outperform its type curve over time, which helps drives one of the highest production growth rates among the Permian group while maintaining a strong balance sheet and hedge position, Keybanc said.