JPMorgan analyst Arun Jayaram lowered his price target for Concho Resources to $132 from $147 while keeping an Overweight rating on the shares. Following a disappointing production guide, the equity value of Concho dropped much more significantly than the underlying impact to cash flows, Jayaram tells investors in a research note. He points out that the equity value of the company fell by 26% last week, "far exceeding" the ~9% drop in his cash flow estimate. While the stock could remain in the "penalty box" until execution improves, Concho's valuation "could be approaching a floor on a relative basis," says Jayaram.