Wednesday, September 22, 2010

Advantage Oil (NYSE:AAV) Downgraded by TD Newcrest

Advantage Oil & Gas Ltd. (NYSE:AAV) was downgraded by TD Newcrest from "Action List Buy" to "Buy," with a price target of $8 on the company.

As with many companies with significant exposure to natural gas, concerns over prices going forward were the major reason for the downgrade.

"Although we have maintained our PT, we have reduced our rating to BUY to reflect our reduced forecast for natural gas prices. We are mindful of the high future development capital in the company’s 2009 year-end reserve report and the impact lower gas prices may have on Advantage’s implied growth timeline," said TD.

TD did note in spite of that, "the company will be complete its Glacier gas plant in Q2/11, which is doubling in size to 100 mmcf/d. Development of its Glacier Montney gas play remains on track."

Advantage closed Tuesday at $6.23, dropping $0.05, or 0.80 percent.

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