UPDATE: Raymond James Downgrades Pengrowth Energy to Market Perform
Raymond James has published a research report on Pengrowth Energy (NYSE: PGH) and has downgraded the company from Outperform to Market Perform.
In the report, Raymond James writes, "Earlier in the week, we lowered our target to reflect lower commodity prices; we moved our WTI oil deck down to US$85/bbl in 2H12E and US$80/bbl in 2013E, which for 2013E is roughly in-line with the strip, but below consensus of US$95/bbl – US$100/bbl. We also continue to expect volatility in Cdn oil differentials over the next 18 – 24 months, which could dampen netbacks for Canadian producers and put additional pressure on cash flow. Our cautious view on gas prices is unchanged; we are using US$2.35/mcf NYMEX in 2H12E and US$3.25/mcf in 2013E."
Raymond James maintains its $7.50 price target on Pengrowth Energy, which is currently trading up 0.61% from yesterday's $6.53 closing price.
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