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Fly News Breaks for October 22, 2019
Oct 22, 2019 | 08:53 EDT
Morgan Stanley analyst Benny Wong downgraded MEG Energy (MEGEF) to Underweight from Overweight, stating that he expects wider heavy sour crude price spreads given falling high sulfur fuel oil prices and more medium and heavy oil supply than expected coming to the market. He prefers to take a more defensive stance against the risk of widening Canadian heavy crude spreads and and sees Cenovus Energy (CVE) along with MEG as most exposed, Wong tells investors. He lowered his price target for MEG shares to C$5.00 from C$7.00.