ECN Capital Corp. (ECN.TO) was downgraded to Market Perform from Outperform at Raymond James on Wednesday.
Analyst Stephen Boland lowered his price target on shares of the Canadian financing company to $3 from $4 after it reported Q1 results on May 15.
"Operationally, this was a tougher quarter with a number of one-time items impacting results," Boland said in a note to clients.
"While recent quarters have been more challenged - reflecting tougher industry conditions - the strategic review remains the overarching theme at play," the analyst said. "That said, the slowdown in growth recently has been material."
"While the strategic review could result in upside from current levels, we expect the stock to be negatively impacted should no solution arise," Boland said.
"Furthermore, we expect management could reduce guidance in the near future which could put further pressure on the stock," the analyst said.