CIBC Downgrades Wild Stream Exploration To 'Sector Performer'
Thursday, January 26, 2022 10:19 AM



CIBC World Markets Inc. downgraded its rating on Wild Stream Exploration Inc. (CVE: WSX.V) to "Sector Performer" from "Sector Outperformer".

The brokerage also slashed its price target on the Calgary-based crude oil and natural gas exploration company to $10.00 from $14.75.

"After meeting with management, we began to understand that our expectations for future growth from the exploration opportunities likely would not materialize as we and the company had expected," CIBC analyst Arthur Grayfer wrote in a note to clients.

Grayfer said the company was beginning to experience hiccups with its growth opportunities, and the company realized that its growth expectations for 2012 would be stunted.

As such, he believes management accepted an offer in advance of moderating growth and a possible devaluation. Grayfer said the management acted prudently and crystallized value in advance of a likely share price decline. "As such, we advise investors to tender their shares."

On Thursday, the stock advanced 0.9 percent to $9.78. The shares have been trading between $7.20 and $12.70 over the past year.


 

Sponsors

Advertisement


Advertisement