UPDATE: Global Hunter Securities Downgrades Swift Energy to Accumulate on Production Shortfall
Global Hunter Securities lowered its rating on Swift Energy (NYSE: SFY) from Buy to Accumulate and reduced its price target from $34 to $28.
Global Hunter Securities noted, "SFY's Q3 financial performance of $0.07 in EPS and $1.66 in CFPS was better than expected ($0.01/$1.58), driven by higher oil price realizations, but production of 31.3 Mboepd failed to achieve our already reduced estimate of 33.7 Mboepd. An operational issue served as the primary explanation for the production shortfall. As a result of execution risk creating a negative sentiment overhang, we believe that SFY shares warrant a more risk-averse stance. As a result, we are reducing our rating to Accumulate (from Buy) and our price target to $28 (from $34)."
Swift Energy closed at $15.56 on Thursday.
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