UPDATE: Canaccord Genuity Downgrades PDC Energy to Hold, Reiterates $34 PT

In a report published Wednesday, Canaccord Genuity downgraded its rating on PDC Energy PDCE from Buy to Hold, and reiterated its $34.00 price target. Canaccord Genuity noted, “Over the past month, PDC shares have risen 20%+ driven by investor enthusiasm as to the company's Utica Shale leasehold in Ohio. As a consequence, PDC shares approximate our $34 target price and accordingly we are downgrading PDCE from a Buy to HOLD rating...PDC has ~45,000 net acres prospective in the Ohio Utica Shale. About 25% of acreage is in southern Guernsey and northern Noble Counties and ~75% is in southern Noble, eastern Morgan and northern Washington, Counties. Limited petrophysical/well data suggest the volatile/movable oil content (i.e., productivity) of the Point Pleasant formation across the southern ~75% of PDC's Utica leasehold is highly uncertain.” PDC Energy closed on Tuesday at $34.92.