Thursday, KeyBanc Capital downgraded Berry Petroleum Co. (BRY) shares to Hold from Buy. Analyst Jack Aydin attributed the downgrade based on valuation and a lack of near-term catalysts.
Despite the downgrade, the analyst continues to like the fundamentals of the company. The analyst believes BRY has the ability and the inventory of projects to increase production by a CAGR of 14% over the next four years while operating with a low cost structure.
Furthermore, the analyst noted that the company has taken concerns of liquidity off the table and has enough dry powder to acquire additional bolt-on type properties without straining the balance sheet. The analyst's downgrade is purely based on valuation, which is now more in line with its peers after the shares have reached and exceeded his former price target of $30.00 per share.
Currently, BRY is down $0.90 or 2.99% and trading at $29.19.
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