Callon Petroleum price target lowered to $42 from $50 at RBC Capital

RBC Capital analyst Scott Hanold lowered the firm’s price target on Callon Petroleum to $42 from $50 and keeps an Outperform rating on the shares. The company’s well performance and operational issues look to persist through 2023 year-end, resulting in a large cut to the firm’s “oil forecast”, even though the management has taken steps to improve performance and expects some of that to take hold soon, the analyst tells investors in a research note. RBC adds however that it is more cautious on Callon shares because at this point there needs to be some tangible signs of sustainable improvements, and the firm believes that could take a minimum of two quarters.