Tudor, Pickering, Holt on Monday downgraded its rating on the shares of ARC Resources (ARX.TO) to hold from buy with a C$28.00 price target following fourth-quarter results from the Western Canadian natural-gas producer that prompted concerns over the performance of its Attachie project.

"While much of the knee-jerk damage has been done with ARX CN equity ending last week with a -10.1% Friday (XOP +3.5%, SPX +2.0%), valuation still screens middle-of-the-pack across NAM coverage which along with uncertainty on Attachie / potential capital reallocation are enough to keep the stock in limbo for the foreseeable future, in our view. While the conference call provided management the opportunity to speak to the context of operations to date at Attachie (10% of the footprint), identify liquids-rich alternatives for capital allocation (Kakwa, where the company has continued to bolt on more acreage; northern Septimus, Dawson lower Montney), and provide a little bit of detail on what's been going on, we see investors likely waiting for either a better entry point from a price perspective or for more clarity on Attachie," analyst Jeoffrey Lambujon wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)