UPDATE: Global Hunter Securities Downgrades Stone Energy to Accumulate on Muted Guidance
Global Hunter Securities reduced its rating on Stone Energy (NYSE: SGY) from Buy to Accumulate and reduced its price target from $30 to $26.
Global Hunter Securities noted, "We are lowering our rating on SGY shares to Accumulate from Buy as the midpoint of management's 2013 production guidance was roughly 2.3 Mboepd less than our 46.3 Mboepd estimate and the proportion of that production composed of natural gas was 2% greater than our 48% forecast. Concurrently, we reduced our price target to $26 from $30. Capex of $650MM for 2013 was in line with our estimate. With lower than expected 2013 production, which management forecasts will be composed of a greater percentage of natural gas, we think a more risk-averse Accumulate rating is appropriate."
Stone Energy closed at $20.15 on Wednesday.
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