MEG Energy downgraded to Sector Perform from Outperform at Scotiabank

Scotiabank downgraded MEG Energy to Sector Perform from Outperform with an unchanged price target of C$27. 2024 production guidance was in line, but capex was higher than the Street’s expectations, notably in 2025, the analyst tells investors. Given the strong outperformance of shares over the past year and a modestly higher spending profile over the next couple of years, the analyst now believes the valuation is more in line with other producers, the firm added.