MEG Energy (TSX: MEG), the Materials sector company, has received a rating update from a Wall Street analyst today. Morgan Stanley’s analyst Benny Wong expressed some doubt about the stock, as it was downgraded to Hold with a C$11 price target.
According to TipRanks.com, Wong is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -10.1% and a 20.0% success rate. Wong covers the Basic Materials sector, focusing on stocks such as Hollyfrontier Corp, Encana Corp, and MEG Energy.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for MEG Energy with a C$11.50 average price target, which is an 8.2% upside from current levels. In a report issued on October 9, AltaCorp Captial also downgraded the stock to Hold with a C$12 price target.
Based on MEG Energy’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of C$179 million. In comparison, last year the company had a net profit of C$83.89 million.
MEG Energy Corp. engages in the development and production of situ oil sands. It focuses in southern Athabasca oil sands region of Alberta. It also develops enhanced oil recovery projects that utilize steam-assisted gravity drainage extraction methods, which consists of Christina Lake Project and the Surmont Project.
The company’s shares closed on Thursday at C$10.63, close to its 52-week high of C$11.70.