UPDATE: Canaccord Genuity Downgrades SandRidge Energy to Sell; Says Rally Unfounded

Canaccord Genuity reduced its rating on SandRidge Energy (NYSE: SD) from Hold to Sell while maintaining its $4 price target.

Canaccord Genuity commented, "Recently, SD has rallied near $7 per share on what we believe is the unfounded expectation that there is a takeout alternative for the company. Accordingly, we reiterate our $4 target price and are downgrading SD from Hold to SELL. Notably, market indications suggest the current clearing price for acreage in the heart of the Mississippian play is ~$1,500/acre including associated production."

SandRidge Energy closed at $6.70 on Friday.

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