NYSE:NXY.P.B - Post by User
Post by
MaxPowerJron Dec 05, 2007 12:32pm
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Post# 13919189
Takeover target?
Takeover target?
Takeover potential at Nexen
11:01 EST Wednesday, Dec 05, 2007
On the back of Nexen’s 2008 guidance, Desjardins Securities figures the company is the most likely of the big-caps in the oil patch to be acquired.
Analyst Adam Zive cites an “attractive combination of world-class assets” in the British North Sea, oil sands, the Gulf of Mexico, offshore West Africa and Yemen; its status as the smallest of the big-cap Canadian exploration and production names; and “significant free cash flow potential,” with the completion of the Buzzard field in the North Sea and anticipated start-up of the Long Lake oil-sand development.
He reiterated a “top pick” rating on the stock and $43 price target. At 11 a.m. EST on Wednesday, the stock has sunk more than 2 per cent to $28.27 on its 2008 guidance.