Struggling in the midst of depressed natural gas prices, Chesapeake Energy (NYSE:CHK) has its rating downgraded by BMO Capital from "Outperform" to "Market Perform."
Over the last six months Chesapeake has dropped in share price, and over the last several months they've pretty much remained level.
Chesapeake closed Friday at $22.27, losing $0.02, or 0.09 percent. BMO dropped their price target on them from $30 to $26.
A growing number of natural gas companies have looked to the oil sector to drive up margins and earnings in the tough natural gas conditions, which have far too much supply at this time, and probably will have for years.
Showing posts with label BMO Capital. Show all posts
Showing posts with label BMO Capital. Show all posts
Monday, November 8, 2010
Wednesday, September 1, 2010
Potash (NYSE:POT) Downgraded by BMO Capital
BMO Capital downgraded Potash Corp. (NYSE:POT) from "Outperform" to "Market Perform."
A growing number of investors are questioning whether or not it's time to take profits with Potash, as it soared after the hostile bid from BHP Billiton (NYSE:BHP), which it rejected.
That rejection generated speculation BHP would sweeten the bid, making investors hold off to see if that would materialize.
BHP CEO Marius Kloppers has attempted to manage expectations there, saying the bid is a fair one, and implying he isn't going to acquire Potash at any cost.
Executives at Potash believe the bid is far too low, and are looking for a white knight to acquire the company, although that hasn't happened, suggesting the bid by BHP is indeed a fair one.
A new development which could challenge that are reports on Russian potash suppliers, who are attempting to raise potash prices in its Brazilian and Asian markets.
An earlier attempt this year failed to convince customers, so we'll have to wait to see if the price increases really happen.
If they do, then Potash would have a supportive argument for being vastly undervalued.
Russian potash producers pretty much guide the global potash prices through the Belarusian Potash Company, the equivalent of Canada's Canpotex, both marketing arms of the industry.
A growing number of investors are questioning whether or not it's time to take profits with Potash, as it soared after the hostile bid from BHP Billiton (NYSE:BHP), which it rejected.
That rejection generated speculation BHP would sweeten the bid, making investors hold off to see if that would materialize.
BHP CEO Marius Kloppers has attempted to manage expectations there, saying the bid is a fair one, and implying he isn't going to acquire Potash at any cost.
Executives at Potash believe the bid is far too low, and are looking for a white knight to acquire the company, although that hasn't happened, suggesting the bid by BHP is indeed a fair one.
A new development which could challenge that are reports on Russian potash suppliers, who are attempting to raise potash prices in its Brazilian and Asian markets.
An earlier attempt this year failed to convince customers, so we'll have to wait to see if the price increases really happen.
If they do, then Potash would have a supportive argument for being vastly undervalued.
Russian potash producers pretty much guide the global potash prices through the Belarusian Potash Company, the equivalent of Canada's Canpotex, both marketing arms of the industry.
Thursday, June 17, 2010
Sunoco (NYSE:SUN) Gets Mixed Responses to Recent Moves
Goldman Sachs (NYSE:GS) reiterated its sell rating on Sunoco (NYSE:SUN), while BMO Capital upgraded the company from Underperform to Market Perform.
BMO also increased their price target from $25 to $36. Goldman's price target on the company is $30 a share.
While Goldman is impressed with the new CEO and CFO of the company and the steps they're taking to increase shareholder value, the added:
“Sunoco, at its core, remains heavily exposed to the East Coast refining and fuels market, which we view as the least favorable refining region in the United States given low-cost import pressure, a poor secular demand outlook, and stubbornly high levels of spare capacity. We remain concerned about the likelihood of medium-term refining cash burn—notwithstanding better 2Q2010 results—and hence value erosion of the company’s better positioned businesses.”
BMO also increased their price target from $25 to $36. Goldman's price target on the company is $30 a share.
While Goldman is impressed with the new CEO and CFO of the company and the steps they're taking to increase shareholder value, the added:
“Sunoco, at its core, remains heavily exposed to the East Coast refining and fuels market, which we view as the least favorable refining region in the United States given low-cost import pressure, a poor secular demand outlook, and stubbornly high levels of spare capacity. We remain concerned about the likelihood of medium-term refining cash burn—notwithstanding better 2Q2010 results—and hence value erosion of the company’s better positioned businesses.”
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