Credit Suisse Downgrades Gran Tierra, Names Top Pick To Survive Low Oil

Courtesy of Benzinga.

David Phung of Credit Suisse on Monday downgraded shares of Gran Tierra Energy Inc. (NYSE: GTE) to Neutral from Overweight with a price target lowered to $3 from $5 on the back of disappointing well results in Bretana Sur, which comprised a prior positive investment thesis of Columbia funding step-change growth in Peru.

“With some degree of uncertainty in future growth, the stock may see limited sustained momentum and we prefer to re-evaluate once the revised report is made available,” Phung wrote. The analyst adds that following the downgrade, Parex Resources is now “our top pick to weather this period of lower oil prices.”

Phung notes that Parex Resources' strong balance sheet and prospects for growth makes it best positioned to benefit from a potential recovery in oil prices.

Posted-In: Bretana Sur Credit Suisse David Phung Gran Tierra EnergyAnalyst Color Downgrades Reiteration Analyst Ratings