Jefferies Thinks Encana Corp’s Stock is Going to Recover

By Jason Carr

In a report released today, Michael Hsu from Jefferies reiterated a Buy rating on Encana Corp (NYSE: ECA), with a price target of $12. The company’s shares opened today at $8.94, close to its 52-week high of $13.85.

According to, Hsu is ranked 0 out of 5 stars with an average return of -20.2% and a 13.3% success rate. Hsu covers the Basic Materials sector, focusing on stocks such as Energy Transfer Partners LP, Continental Resources, and Gulfport Energy Corp.

Currently, the analyst consensus on Encana Corp is Strong Buy and the average price target is $12.50, representing a 39.8% upside.

In a report issued on August 16, Canaccord Genuity also reiterated a Buy rating on the stock with a $11.50 price target.

Based on Encana Corp’s latest earnings report for the quarter ending June 30, the company posted quarterly revenue of $954 million and quarterly net profit of $331 million. In comparison, last year the company earned revenue of $694 million and had a GAAP net loss of $601 million.

Based on the recent corporate insider activity of 26 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ECA in relation to earlier this year.

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Encana Corp. operates as a natural gas company. It focuses on developing its portfolio of diverse resource plays producing natural gas, oil and natural gas liquids. The company operates through three segments: Canadian, the United States of America and Market Optimization.