Jefferies Upgrades EnCana Corp. (ECA) to Buy

Jefferies upgraded EnCana Corp. (NYSE: ECA) from Hold to Buy with a price target of $9.50, saying the dividend cut enables a focused plan.

Analyst Jonathan Wolff commented, "We are upgrading ECA to Buy from Hold following severe relative share price weakness, exacerbated by a surprise dividend cut today. The lowered distribution likely caused ‘mechanical’ selling by income-oriented funds. But lower payouts appear prudent, enabling stable funding of ECA’s low-cost Permian asset. The stock looks inexpensive, trading at a meaningful discount to our Risk-Adjusted Asset Value (RAAV)."

The firm lowered FY 2015 EPS from ($0.15) to ($0.17) and FY 2016 EPS from $0.22 to $0.10.

For an analyst ratings summary and ratings history on EnCana Corp. click here. For more ratings news on EnCana Corp. click here.

Shares of EnCana Corp. closed at $5.54 yesterday.

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