RBC positive on Carrizo Oil & Gas Inc. $CRZO as looked to refocus core growth in 2018.
RBC note: “Carrizo has recently made a transition from a fairly diversified company with an Eagle Ford focus to a more simplified E&P with core assets exclusively in the Eagle Ford and the Delaware Basin. We think results in the Delaware are likely to surprise to the upside, and the company’s acquisition economics are already very well supported by historical well results. Carrizo multiple has yet to reflect its recent asset base transformation or its underlying growth potential (<6x 2018 EBITDA). We also believe they have the ability to grow within cash flow in 2019+, which could surprise to the upside."
RBC has a $24 price target. Shares closed Friday at $21.56.