EnCana "buy," target price raised

06/20/08 - UBS

NEW YORK, June 20 (newratings.com) - Analysts at UBS maintain their "buy" rating on EnCana Corp (ECA), while raising their estimates for the company. The 12-month target price has been raised from $120 to $130.

In a research note published this morning, the analysts mention that the company has raised its growth targets for GasCo from 7%-9% to 10%, reflecting robust natural gas prices and an encouraging operational performance. The upward revision in the target price reflects initial value for the Haynesville and Horn River shale plays, which are close to being commericalised, the analysts add. The EPS estimates for 2008 and 2009 have been raised from $6.01 to $6.05 and from $7.28 to $7.45, respectively.