Zacks Investment Research downgraded shares of Canadian Natural Resources Ltd. (CNQ) from NEUTRAL to UNDERPERFORM on April 17, 2013, with a target price of $27.00.
We are recalibrating our investment thesis on Canadian Natural Resources to Underperform from Neutral. Our pessimistic outlook on Canada's second biggest energy firm is fueled by the recently reported weak fourth quarter results, which suffered on the back of lower natural gas production. We also remain worried about environmental concerns surrounding oil sands projects and, in particular, safety issues associated with the showpiece Horizon development. Continued weakness in natural gas prices and a fresh round of cost inflation in the oil sands regions have also held back Canadian Natural stock. Partially offsetting these negative aspects are the company's large, diversified oil and gas asset bases, together with international exposure and a well-balanced blend of conventional and unconventional prospects.
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