Friday, October 29, 2010

Wells Fargo (NYSE:WFC) Says Energen (NYSE:EGN) Valued Where it Should Be

Saying Energen Corp.'s (NYSE:EGN) valuation is in line with its performance realities, Wells Fargo (NYSE:WFC) downgraded them from "Outperform" to "Market Perform."

"We believe Energen is an attractively valued diversified energy company, the growth of which is primarily tied to its E&P business. EGN's strategy is designed to use its low leverage, liquidity, and free cash flow to opportunistically acquire and develop oil and gas assets. We think shares appeal to both energy and utility investors looking for a lower-risk way to gain exposure to commodities. In addition, EGN's modest dividend is largely supported by its gas utility," said Wells.

Energen closed Thursday at $44.65, losing $1.27, or 2.77 percent. Wells lowered their valuation range on them from $52-$54 to $51-$53.

No comments: