The Materials sector company, MEG Energy (TSX: MEG), has received a rating update from a Wall Street analyst today. National Bank’s analyst Brian Milne expressed some doubt about the stock, as it was downgraded to Hold with a C$12 price target.
Currently, the analyst consensus on MEG Energy is a Moderate Buy with an average price target of C$10.80, a 0.7% upside from current levels. In a report issued on September 26, TD Securities also reiterated a Hold rating on the stock with a C$9 price target.
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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 Wednesday at C$10.72, close to its 52-week high of C$11.70.
