Zacks Investment Research downgraded shares of Encana Corporation (ECA) from OUTPERFORM to NEUTRAL on September 25, 2013, with a target price of $18.00.
Despite strong second quarter results, we are downgrading shares of Encana Corp. to Neutral from Outperform, as we see limited near term price upside. Encana has one of the largest natural gas resource portfolios in North America, which provides a diverse/high quality inventory of reserves. We perceive a solid long-term future for the company as demand for natural gas soars, spurred by its cost effectiveness and abundant supply in North America. However, at the same time, Encana's sizeable exposure to volatile natural gas prices remains a key area of concern, in our view. The growing popularity of renewable sources of energy, challenging market prices and cost inflation has also held back the stock.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on Encana Corporation (ECA),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment