Analyst Actions: Barclays Upgrades Enerplus To Overweight, Downgrades Arc Resources To Equalweight


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In a note this morning, Barclays ( BCS ) reviewed its stance on Canadian oil & gas mid-cap producers as a result of volatile commodity prices and has tweaked its commodity assumptions.

Within this framework, BCS is upgrading Enerplus (ERF.TO) to Overweight with a price target of C$15, up from C$13. The analyst believes ERF will benefit from strength in natural gas, and is also supported by an attractive dividend yield of 8.1%.

Additionally, BCS is downgrading Arc Resources (ARX.TO) to Equalweight because it believes the stock is now fairly valued at current levels. ARX is up 16% year to date, against the peer average of up 1%. Note that ARX remains one of Barclays' favorite names given the company's strong management team and disciplined growth. The analyst has a price target of C$28 on the stock, up from C$26.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

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