MEG Energy upgraded to Outperform from Sector Perform at Scotiabank

Scotiabank analyst Jason Bouvier upgraded MEG Energy to Outperform from Sector Perform with a C$35 price target. After years of having above average financial leverage, MEG will hit its long-term debt target of $600M in Q3 and the company’s balance sheet is now “much more manageable,” improving the overall sustainability of the company, the analyst tells investors. With the debt target reached in Q3, MEG is set to allocate 100% of its free cash flow to shareholder returns, which are set to ramp up, the analyst noted.