Jefferies Reiterates Buy on Encana (ECA) Following Announced Equity Offering
- Stocks dip as earnings pour in, consumer discretionary lags
- UPDATE: Alphabet (GOOG) Tops Q3 EPS Views; Revs Strong
- Baker Hughes (BHI), General Electric (GE) in Partnership Talks, Not Merger Talks
- Cirrus Logic, Inc. (CRUS) Q2 Results and Guidance Beat Estimates
- Amazon.com (AMZN) Misses Q3 EPS by 26c, Offers Q4 Guidance
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
Jefferies reiterated a Buy rating and $13.00 price target on EnCana Corp. (NYSE: ECA) following the company's announced equity offering. The deal was a surprise, despite the recent finalization of the company's ‘Shelf Prospectus’ in late-August. The offering should raise ~$1.0 B and add 12.5% to its share count, which is designed to retire bank borrowings and to preserve re-investment in ECA’s truly core Midland acreage.
Analyst Jonathan Wolff commented, "We expect share price weakness on the surprise equity offering announcement. The very large financing is designed to protect re-investment amid low crude/ AECO curves. We see a funded, multi-year growth outlook as a likely outcome at ECA’s coming analyst day (Oct.5). But investors are now likely to push ECA to further monetize its (Canadian) Montney land holdings or consider a strategic re-alignment."
Shares of EnCana Corp. closed at $9.86 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Encana to hold third quarter results conference call on Thursday, November 3, 2016
- Jefferies Cuts Price Target on VCA Antech (WOOF) Following 3Q Miss
- Jefferies Raises Price Target on Planet Fitness (PLNT) Following Solid 3Q
Create E-mail Alert Related CategoriesAnalyst Comments
Related EntitiesJefferies & Co, Crude Oil, Equity Offerings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!