Market Overview

UPDATE: BMO Capital Markets Downgrades Advantage Oil & Gas to Underperform


BMO Capital Markets lowers its rating on Advantage Oil & Gas (NYSE: AAV) and cuts its target price from $5 to $3.25 as it believes natural gas oversupply will cause the company to lag the rest of the E&P market.

BMO Capital Markets says, "As we exit the winter heating season with record-high natural gas storage inventory and strong supply, we believe balance-of-year Henry Hub gas prices could fall below $2/Mcf to force production cuts and to restore balance to the oversupplied market. In this macro environment, we expect Advantage Oil & Gas, a dry-gas producer without yield support, will continue to lag the broader E&P market. The recent unsuccessful Birchcliff Energy (BIR-TSX) offer process also makes the prospect of an Advantage takeout less likely, in our view."

AAV closed at $2.95 yesterday.


Related Articles (AAV)

View Comments and Join the Discussion!

Posted-In: BMO Capital MarketsAnalyst Color Downgrades Price Target Intraday Update Analyst Ratings

Latest Ratings

OCGNHC Wainwright & Co.Downgrades
RPAYCanaccord GenuityMaintains26.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at