EnCana reinitiated with "sector outperformer"

05/21/08 - CIBC World Markets

NEW YORK, May 21 (newratings.com) - Analysts at CIBC World Markets reinitiate coverage of EnCana Corporation (ECA) with a "sector outperform" rating. The 12-18 month target price has been raised from $107 to $115.

In a research note published this morning, the analysts mention that EnCana's splitting up of the natural gas and oil sands business is likely to provide visibility into the company's profitable growth potential. EnCana’s multiples have been lower than that of the Canadian integrated companies focused on oil sands and that of other gas producers, the analysts say. Following the split, the company’s multiples are likely to be in-line with that of the industry leaders, CIBC World Markets adds.