This Drop was probably from the First Energy DowngradeThey downgraded the share price target to $2.50 after the Q2 results. ... --------------------------------------- Horizon North Logistics Inc. (HNL) Downgraded to Underperform We believe there are structural headwinds facing the Western Canadian remote camps and catering industry (details enclosed within) which are going to result in lower ROCE in upcoming years relative to historical averages. As a result, we believe the valuation being applied to Horizon North relative to its historical average (2016e current EV/EBITDAS 7.5x, 5-year average 6.9x) is unwarranted. We have lowered our 2016e EBITDAS by 10.3% to $69 mm to reflect lower pricing in the Companys large camps segment. We are moving our target price to $2.50/share from $4.00/share, which implies a target EV/EBITDAS multiple of 5.9x 2016 EV/EBITDAS. This discount reflects our concerns about ROCE, absent an improvement in commodity prices and/or the need for additional accommodation services within and outside the oil and gas industry. Our target price implies a 12-month total return of negative 15%, we are moving our ranking to Underperform. Corporate Results