Secure Energy Services Downgraded to Sector Perform at RBC
08:06 AM EST, 03/07/2023 (MT Newswires) -- Secure Energy Services Inc. (SES.TO) was downgraded to Sector Perform from Outperform at RBC Capital Markets on Tuesday.
Analyst Keith Mackey lowered his target price on shares of the Calgary-based energy company that specializes in oilfield waste treatment and disposal to $8 from $11.
"The Competition Tribunal's decision to require Secure to sell 29 facilities sets up for a time-consuming legal appeals process, creates EBITDA uncertainty, and introduces forced asset-sale risk," Mackey said in a note to clients. "Granted, some of these risks may now be reflected in (Monday's) 20% sell-off, but we move to the sidelines as the legal process plays out."
Mackey said a full decision by the Competition Tribunal is expected in approximately three weeks, and Secure plans to file an appeal within 30 days to the Federal Court of Appeal and seek a stay of the Tribunal's order.
"We think it's possible, but unlikely the parties will negotiate a mid-ground remedy before appeal is done," the analyst said.
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