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