UPDATE: Raymond James Downgrades Enerplus to Market Perform on Production Outlook

Raymond James reduced its rating on Enerplus

from Outperform to Market Perform and lowered its price target from $18 to $16. Raymond James commented, "Going into 2013E, production growth is limited and we forecast a capex-adjusted payout ratio of ~135% even with a 20% reduction in spending. At the midpoint of the guidance range, we expect production will be essentially flat on a per share basis and just 5% CFPS growth at our price deck. The reduction in spending is mostly on non-operated properties in the Marcellus; almost half of the 2013 capex will be directed toward oil growth in North Dakota – well results have been good; ERF will focus on improving spending efficiencies, which could be a challenge given the significant activity in the region." Enerplus closed at $13.24 on Monday.