BMO Capital Reiterates a Sell Rating on Penn West Petroleum

By Austin Angelo

Penn West Petroleum (TSX: PWT), the Materials sector company was revisited yesterday, and remains overvalued for at least one analyst on the street. Analyst Ray Kwan from BMO Capital rated Penn West Petroleum (TSX: PWT) a Sell, setting a C$2 price target.

According to, Kwan is ranked 0 out of 5 stars with an average return of -9.7% and a 25.7% success rate. Kwan covers the Basic Materials sector, focusing on stocks such as Pengrowth Energy Corp, Enerplus Corp, and Encana Corp.

Currently, the analyst consensus on Penn West Petroleum is Hold and the average price target is C$2.50, representing a 40.4% upside.

In a report issued on May 30, Credit Suisse also maintained a Sell rating on the stock with a C$2 price target.

Penn West Petroleum’s market cap is currently C$897.2M and has a P/E ratio of 0.

Penn West Petroleum Ltd. is a conventional oil and natural gas producer in Canada. It explores and produces oil and natural gas resources. The company engages in the business of acquiring, exploring, developing, exploiting and holding interests in petroleum and natural gas properties and related assets. Its portfolio of properties includes Cardium, Viking and Peace River areas of Alberta. Penn West Petroleum was founded on December 27, 1979 and is headquartered in Calgary, Canada.

The company’s shares closed last Wednesday at $1.78.