Carrizo shares fall as analyst downgrades stock

Shares of Carrizo Oil & Gas fall as analyst downgrades stock on share price appreciation

• On 1:31 pm EDT, Tuesday October 13, 2009

NEW YORK (AP) -- Shares of Carrizo Oil & Gas Inc. fell Tuesday as an analyst downgraded the independent crude oil and natural gas producer, based on a view that the stock has rapidly climbed to a fair value.

Carrizo shares fell $1.04, or 3.6 percent, to $27.77 in afternoon trading. Since hitting record lows in March, Carrizo shares have more than tripled to close at $28.81 on Monday.

SunTrust Robinson Humphrey John Gerdes downgraded his rating for the stock to "Neutral" from "Buy," based on the stock's growth. He added that the stock has outperformed the exploration and production sector by about 30 percent.

Carrizo shares have essentially reached Gerdes' target price of $30. Separately, Gerdes raised his target by $1 to reflect long-term oil and natural gas price predictions.

Looking ahead, Gerdes expects strong Barnett Shale production next year and North Sea oil discoveries to drive growth.

Gerdes held to his 2009 profit estimate of $1.44 per share, but cut his 2010 forecast to $2.42 per share, compared with earlier predictions of $2.61 per share. Analysts polled by Thomson Reuters expect average 2009 and 2010 earnings of $1.39 per share and $1.46 per share, respectively.