Zacks Investment Research upgraded shares of Nexen Inc (NXY) from UNDERPERFORM to NEUTRAL on September 05, 2012, with a target price of $26.00.
We are upgrading our recommendation on Nexen Inc. to Neutral from Underperform. Nexen continues to make solid progress in its exploration and production (E&P) portfolio. It has been actively investing in its upstream assets in recent years, significantly improving its long-term production-growth prospect. Production increased in the quarter mainly on the ramp-up of activity at the Usan project, offshore West Africa, and robust performance by the UK assets, primarily the Buzzard platform. However, the turnaround planned in Long Lake in August is likely to lower output in the third quarter. This will adversely affect the company's revenue. Further, low gas prices and execution risk are concerns.
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