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Pengrowth Energy upgraded at Canaccord on valuation

Published 02/13/2018, 03:34 PM
Updated 02/13/2018, 03:34 PM
© Reuters.  Pengrowth Energy upgraded at Canaccord on valuation
  • Pengrowth Energy (PGH -0.1%) is upgraded to Hold from Sell with a C$1 price target at Canaccord, which notes that shares are down 33% over the past four months.
  • Canaccord says its Sell thesis on PGH revolved around a run-up in share price from an individual investor building a significant position in the company and exceeding the firm's intrinsic value, but the stock has since transitioned from overvalued to fairly valued.
  • The firm continues to believe PGH's above-average leverage is a focal point for investors, but items such as physical contracts to sell its heavy oil at ~$15/bbl means realized pricing and cash flow could outperform expectations.
  • Now read: Derek Evans' Last Stand At Pengrowth Energy


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