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Northern Oil and Gas cut to Sector Perform at RBC Capital on valuation
The Fly

Northern Oil and Gas cut to Sector Perform at RBC Capital on valuation

RBC Capital downgraded Northern Oil and Gas (NOG) to Sector Perform from Outperform with a price target of $45, up from $43. The firm is constructive on the company’s outlook, but sees the stock’s relative valuation as “inline-to-above peers”, the analyst tells investors in a research note. Northern Oil has scaled and diversified operations through acquisitions, which improved the stability of its outlook but also moved the valuation higher compared to a prior and historical discount, RBC states, adding that the recent acquisitions have also increased the company’s leverage to levels above peers.

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