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Tickers in this Article: NXY
Nexen Inc (NXY) has been downgraded from Neutral to Underperform. The company reported mixed results for the first quarter of 2012 with earnings coming in below the Zacks Consensus Estimate. Revenues came in approximately 13% above the Zacks Consensus Estimate. Production also decreased in the quarter mainly due to the expiry of the Masila contract in Yemen in December 2011. Though the production guidance for the year has been maintained, we are skeptical about the company s sustainable operational and execution abilities in achieving it. Low gas prices and execution risk are other concerns. Given these headwinds, we expect shares of Nexen to be under pressure in the near future. As such, we see no upside in the stock from the current level. Our target price for Nexen is $15.
 
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