As previously reported, Morgan Stanley analyst Drew Venker initiated Callon Petroleum with an Equal Weight rating, stating that its top quartile margins, a consolidated acreage position, above-average well performance, and a track record of capitalizing on the industry's evolution are all supportive of a stronger valuation. However, Callon's drilling inventory is not as deep as its Permian peers' and it has higher leverage, said Venker, who sees a relatively balanced risk-reward at current levels. He set a $9 price target on Callon Petroleum shares.