Citi Upgrades Rating On CXO To Hold

Citi, citing Q1'11 numbers ahead of expectations, has upgraded its rating on Concho Resources (NYSE: CXO) from Sell to Hold.

Says Citi, in its report, “As outlined in our previously published ‘Quick Read' note, Concho reported Q1'11 financial results slightly ahead of our and consensus forecasts primarily on much stronger-than-expected production (up ~6.8% sequentially despite adverse Texas weather in February) which more than offset generally higher costs. Following the beat, Concho raised its full-year guidance slightly (1.3%) to 22.8-23.3 MMBOE (we model 23.4 MMBOE) but also upped 2011 CapEx by 22% to $1.35 billion.”

Citi maintains its $95 price target on the stock.

CXO closed at $94 yesterday.