Tuesday, May 24, 2011

Carrizo's (CRZO) Rating Upgraded by Wells Fargo (WFC)

Wells Fargo & Co. (NYSE:WFC) upgraded Carrizo Oil & Gas (NASDAQ: CRZO) from a “Market Perform” rating to an “Outperform” rating.

The giant bank lowered their 2011 EPS estimate on Carrizo from $1.93 to $1.90, while raising its 2012 EPS estimate from $5.60 to $5.76.

"As the company shifts its focus from the Barnett towards the emerging Eagle Ford, Marcellus, and Niobrara plays, we believe Carrizo will see an impressive production growth profile over the next few years while changing the production mix to be more weighted towards liquids. We believe this growth coupled with cash flow to cover anticipated capital needs will drive shares to Outperform peers," said Wells.

Carrizo Oil & Gas, Inc. participates in the exploration, development, production, and transportation of oil and natural gas, most in the United States.

Carrizo shares are jumping today, trading at $37.06, gaining $2.58, or 7.48 percent, as of 2:01 PM EDT.

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