Southwestern power Co.’s stock SWN, -5.76% tumbled 19% in energetic afternoon alternate Friday, as oil and fuel company’s 2016 operational outlook brought on analyst Jonathan Wolff at Jefferies to swing to bearish from bullish. Wolff slashed to inventory’s score to underperform, after being at purchase for the remaining yr. He lower his inventory price goal to $ 4, which is 27% below present levels, from $ 11, which was once sixty two% above Thursday’s closing worth of $ 6.77. the corporate equipped late Thursday a 2016 production outlook that Wolff stated was well below expectations, and mentioned it presently had no rigs working. Wolff stated monetary leverage could change into a concern, given Southwestern’s present money float place relative to its excessive debt burden. “evidently, we had been too confident about [Southwestern’s] skill to navigate weak macro prerequisites,” Wolff wrote in a notice to shoppers. Wolff had saved his purchase score due to the fact that Feb. 2, 2015 regardless of the inventory tumbling 74% thru Thursday’s close, and despite the company saying in January it would lay off about 45% of its body of workers. “recent workforce reductions may have come too late,” Wolff wrote, “given the now urgent need to address lofty debt ranges quite than on specializing in sustaining the asset base.”
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