ARC Resources (TSE:ARX) Stock Rating Lowered by Scotiabank

Key Points

• Scotiabank downgraded ARC Resources (TSE:ARX) from "outperform" to "hold" and cut its target price to C$30 from C$36, implying a potential upside of about 25.6% from the prior close.
• ARX shares opened at C$23.89 and were down about 8.7%, trading near their 1-year low (C$22.63) versus a 1-year high of C$31.56; the company has a market cap of C$13.9B and a P/E of 9.44.
• Despite Scotiabank's downgrade, analyst consensus remains a "Buy" (one Strong Buy, seven Buy, one Hold) with an average price target of C$32.50.

ARC Resources (TSE:ARX - Get Free Report) was downgraded by equities research analysts at Scotiabank from an "outperform" rating to a "hold" rating in a research note issued on Friday, MarketBeat.com reports. They presently have a C$30.00 target price on the oil and gas exploration company's stock, down from their prior target price of C$36.00. Scotiabank's price target would indicate a potential upside of 25.58% from the stock's previous close.

A number of other brokerages have also recently weighed in on ARX. Capital One Financial upgraded ARC Resources to a "strong-buy" rating in a research report on Monday, October 27th. CIBC reduced their target price on shares of ARC Resources from C$34.00 to C$31.50 in a research note on Wednesday, October 15th. National Bankshares dropped their target price on shares of ARC Resources from C$33.00 to C$30.00 and set an "outperform" rating for the company in a research report on Friday. Finally, Raymond James Financial cut their price target on shares of ARC Resources from C$35.00 to C$33.00 and set an "outperform" rating for the company in a report on Monday, September 15th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, ARC Resources currently has an average rating of "Buy" and a consensus price target of C$32.50.

ARC Resources Trading Down 8.7%

ARX stock opened at C$23.89 on Friday. ARC Resources has a 1-year low of C$22.63 and a 1-year high of C$31.56. The company has a current ratio of 1.14, a quick ratio of 0.42 and a debt-to-equity ratio of 30.05. The business's 50 day moving average is C$25.53 and its 200-day moving average is C$27.09. The firm has a market cap of C$13.90 billion, a P/E ratio of 9.44, a P/E/G ratio of 0.29 and a beta of -0.01.

About ARC Resources

ARC Resources is an independent energy company engaged in the acquisition, exploration, development, and production of conventional oil and natural gas in Western Canada. The company produces light, medium, and heavy crude, condensate, natural gas liquids, and natural gas. Production averaged 163.6 thousand barrels of oil equivalent per day in 2020, and the company estimates that it holds approximately 879 million boe of proven and probable crude oil and natural gas reserves.