Sunday, July 23, 2017

Zacks lowers Encana Corporation (ECA) to Sell

Encana Corporation (NYSE:ECA) (TSE:ECA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Friday. “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."
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