KeyBanc downgrades ‘show me’ story Vital Energy to Sector Weight

KeyBanc analyst Tim Rezvan last night downgraded Vital Energy to Sector Weight from Overweight without a price target. The firm questions the price and all-cash structure for Point Energy. It sees a “big step back” in deleveraging for a company that needs lower leverage to attract long-only sponsors. Vital has become a “show me” story on deleveraging and cash expenditure normalization, the analyst tells investors in a research note. KeyBanc prefers “to wait and assess traction on both fronts.”