CIBC World Markets Inc. trimmed its price target on Talisman Energy Inc. (TSX: TLM.TO) (NYSE: TLM) to US$22.50 from US$23.00, saying it views the company's production and capex budget update as slightly negative.
"TLM will spend $4.0B in 2012, in line with CIBCe of $3.9B.
Production in 2012 is guided to 425-446 kBoe/d, a growth rate of 0-5%;
however, this is at low end of TLM's original nearterm growth plans of
5%-10% as dry gas growth as been pulled back," CIBC said.
"We believe TLM's guidance is deliberately very conservative given
two guidance downgrades in 2011," CIBC analyst Andrew Potter wrote in a
note.
Potter, who has "Sector Outperformer" rating on the stock, said he
has reduced its medium-term forecasts to reflect lower N. Sea volumes,
resulting in a slight decrease to NAV. He also trimmed his 2012
production forecast to 444,554 boe/d from 454,954 boe/d.
Potter moved down his 2012 EPS estimate for the company to US$0.89 from US$0.95 and 2013 EPS estimate to US$1.09 from US$1.12.
The stock is currently trading 0.8% lower at $12.39 on the Toronto Stock Exchange. On the NYSE, shares fell 0.65%.