Encana (ECA) – Analysts’ Recent Ratings Changes

Several analysts have recently updated their ratings and price targets for Encana (NYSE: ECA):

  • 2/7/2018 – Encana was upgraded by analysts at AltaCorp Capital from a “sector perform” rating to an “outperform” rating.
  • 2/6/2018 – Encana was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “Based on the number of near-term challenges, we are lowering our investment thesis for Encana Corp. to Sell from Hold. With natural gas unable to break through the $3 barrier, the company’s earnings and cash flows are bound to suffer, at least in the near-to-medium term. This is expected to limit its ability to deliver positive earnings surprises. Also, the recent equity offering – despite helping ECA to pay down debt and boost drilling – has significantly diluted existing shareholders' equity. Therefore, ahead of its second-quarter results, we see the company as a risky bet that is best avoided at the moment.”
  • 1/31/2018 – Encana was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “Based on the number of near-term challenges, we are lowering our investment thesis for Encana Corp. to Sell from Hold. With natural gas unable to break through the $3 barrier on a consistent basis, the company’s earnings and cash flows are bound to suffer, at least in the near-to-medium term. This is expected to limit its ability to deliver positive earnings surprises. Also, the recent equity offering – despite helping ECA to pay down debt and boost drilling – has significantly diluted existing shareholders' equity. Therefore, ahead of its fourth-quarter results, we see the company as a risky bet that is best avoided at the moment.”
  • 1/30/2018 – Encana was given a new $17.00 price target on by analysts at Jefferies Group LLC. They now have a “buy” rating on the stock.
  • 1/24/2018 – Encana was upgraded by analysts at Morgan Stanley from an “equal weight” rating to an “overweight” rating. They now have a $18.00 price target on the stock, up previously from $15.00.
  • 1/16/2018 – Encana had its price target raised by analysts at Royal Bank of Canada from $15.00 to $16.00. They now have an “outperform” rating on the stock.
  • 1/15/2018 – Encana was downgraded by analysts at AltaCorp Capital from an “outperform” rating to a “sector perform” rating. They now have a $14.50 price target on the stock.
  • 1/12/2018 – Encana was upgraded by analysts at Desjardins from a “hold” rating to a “buy” rating. They now have a $16.00 price target on the stock.
  • 1/12/2018 – Encana was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “Following Encana’s announcement of its production volumes smashing the estimates for the fourth quarter of 2017, we are upgrading our investment thesis from ‘Sell’ to ‘Hold’. The upstream operator has successfully repositioned its asset base and shifted focus to four key growth areas namely Montney, Duvemay, Eagle Ford and Permian which is driving its output growth. In fact, Encana is targeting a production growth of 60% from its core assets through 2021. ECA’s cost-reduction initiative and divestment of high-cost low-profit assets offer financial flexibility to the company to handle the current volatile market condition in a better fashion. However, the company’s huge exposure to natural gas remains a key area of concern due to volatile commodity price. Also, ECA’s capex have been exceeding its cash flow from operations in the past few quarters, leading to negative free cash flow. “
  • 1/11/2018 – Encana was given a new $17.00 price target on by analysts at BMO Capital Markets. They now have a “buy” rating on the stock.
  • 1/9/2018 – Encana had its price target raised by analysts at National Bank Financial from $14.50 to $18.00. They now have an “outperform” rating on the stock.
  • 1/9/2018 – Encana had its “buy” rating reaffirmed by analysts at Canaccord Genuity. They now have a $16.00 price target on the stock.
  • 12/19/2017 – Encana was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “Based on the number of near-term challenges, we are lowering our investment thesis for Encana Corp. to Sell from Hold. With natural gas unable to break through the $3 barrier, the company’s earnings and cash flows are bound to suffer, at least in the near-to-medium term. This is expected to limit its ability to deliver positive earnings surprises. Also, last year's equity offering – despite helping ECA to pay down debt and boost drilling – has significantly diluted existing shareholders' equity. Therefore, ahead of its second-quarter results, we see the company as a risky bet that is best avoided at the moment.”

Shares of Encana Corp (NYSE:ECA) traded up $0.67 during trading hours on Monday, hitting $10.85. The stock had a trading volume of 5,075,119 shares, compared to its average volume of 8,710,946. Encana Corp has a 12-month low of $8.01 and a 12-month high of $14.31. The company has a market cap of $9,906.30, a price-to-earnings ratio of 13.73, a P/E/G ratio of 1.38 and a beta of 2.07. The company has a debt-to-equity ratio of 0.60, a current ratio of 1.61 and a quick ratio of 1.61.

Encana Corporation is an energy producer that is focused on developing its multi-basin portfolio of natural gas, oil and natural gas liquids (NGLs) producing plays. The Company’s operations also include the marketing of natural gas, oil and NGLs. All of its reserves and production are located in North America.

Receive News & Ratings for Encana Corp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Encana Corp and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply