Analyst Actions: CIBC World Markets Downgrades Sterling Resources

By MT Newswires,  November 15, 2012, 03:25:03 PM EDT

Sterling Resources Ltd.'s (SLG.TO) unexpected decision to raise as much as $45-million through an equity offering will be "highly dilutive," CIBC World Markets analyst Ian Macqueen said, the Globe & Mail reported.

"Sterling has long focused on expanding its assets and not its balance sheet. Funding has been a longstanding problem ... and will continue to be a problem without further asset sales and farm-outs," he wrote in a research note. A series of delays at its Breagh Field has also put the company in a tenuous position.

Macqueen cut his price target to $1.50 from $1.90 and his rating to "sector perform" from "sector outperform."




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


This article appears in: Investing, Commodities

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