Zacks Equity Team likes EnCana (ECA) - June 14

[dan_s]

In the last 3 months, 7 ranked analysts set 12-month price targets for ECA. The price targets range from $11.00 to $12.00. The average price target among the analysts is $11.44.

Zacks: https://finance.yahoo.com/news/encana-e ... 02532.html

My valuation of ECA is $12.50/share, but there is a lot of upside to that price target. Q2 2019 will be the first full quarter since the company merged with Newfield Exploration (NFX).
> Companies that are "in transition" following a big merger often don't the analysts' coverage that they deserve. It is difficult to build "post-merger" forecast models because it is a lot more difficult than just adding the two companies together.
> ECA reported a loss of $0.17/share in Q1, but it was entirely because of $427 million non-cash write-down on the value of their hedges.
> At lease half of the MTM adjustment will reverse in Q2, so ECA should be reporting Q2 EPS of more than $0.20 and a big increase in production of more than 120,000 Boepd Q over Q.