UPDATE: Canaccord Genuity Downgrades Endeavour International on Little Room for Error
In a report published Wednesday, Canaccord Genuity analyst Stephen Berman downgraded Endeavour International (NYSE: END) from Buy to Hold, but reiterated the $5.00 price target.
In the report, Canaccord Genuity noted, “END's production growth, driven by its North Sea operations, is set to resume in Q4/13 following a successful flow test of the West Rochelle well and the third Bacchus well that recently came online. Production and sales volume in Q3/13 meanwhile will be down. There is little room for error as the company's balance sheet is stretched. Furthermore, END shares have surpassed our $5 valuation and we currently see no room for expansion on our $5.50 NAV. Therefore, we are downgrading the stock to HOLD from Buy while maintaining our $5 price target.”
Endeavour International closed on Tuesday at $5.30.
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