-- BMO Capital Markets on Thursday downgraded its rating on the shares of Tourmaline Oil (TOU.TO) to market perform from outperform while raising its price target to C$70.00 from an undisclosed prior level following first-quarter results from the Western Canadian natural-gas producer.
"TOU reported slightly lower-than-expected CFPS results with volumes coming largely in line with estimates. TOU's share price has moved in line with our target price, and we see limited room for further multiple expansion given the large premium to peers. Furthermore, TOU's natural gas volumes are heavily exposed to floating WCAD and U.S. Pacific prices, which we suspect will continue to underperform in the near term due to growing storage levels. Accordingly, we are lowering our investment opinion to Market Perform but modestly raising our target price to $70," analyst Randy Ollenberger wrote.
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Price: $62.99, Change: $-3.87, Percent Change: -5.78%