Dallas, Texas 02/06/2014 (FINANCIALSTRENDS) – The $21.85 billion market capped oil and gas producer Cenovus Energy Inc (USA) (NYSE:CVE) got downgraded by Scotiabank from previous focus list rating to outperform on February 3. Raymond James was another rating agency which retained a outperform rating on the stock of Calgary based oil and gas producer while pegging the price target on the stock to $40 Canadian Dollars on 28th January. Investment advisory firm Zacks has also pegged the rating on this oil and gas stock to a underperform from previous rating of neutral. The price target on the stock too has been pegged down the price target to $25.4.
The Oil large cap has managed to post revenue of $17.55 billion from continued operations over the past 12 months. It has seen its revenue grow by 10.7 percent in previous quarter and has managed to retain close to $578 million as net income for the same 12 month period. It has managed to post earnings per share of $0.77 over the trailing 12 months and has managed to grow it by 22 percent when compared on a quarter on quarter basis.
The reasons for the downgrade by a host of rating agencies is due to the fact that over the past 12 months, the price appreciation and dividends payout has been negative 19 percent, as compared to the S&P 500 Total Return was up 19.45%. Other similar sized oil firms like Imperial Oil down was up 5.59% in the same time period. This under the surface weakness in the stock is one of the key reasons why the stock was downgraded by agencies.
Reflecting the weakness that the analyst agencies have highlighted, the stock of Cenovus Energy Inc (USA) (NYSE:CVE) has lost close to 19.7 percent in the previous 12 months and by close to 6.09 percent in the past one week.