ARC Resources (TSE:ARX) Lowered to Neutral Rating by CIBC World Markets

CIBC World Markets downgraded shares of ARC Resources (TSE:ARX) from an outperform rating to a neutral rating in a research report sent to investors on Monday morning,BayStreet.CA reports. The brokerage currently has C$25.50 target price on the oil and gas exploration company’s stock, down from their prior target price of C$27.50.

ARX has been the topic of several other reports. Natl Bk Canada lowered shares of ARC Resources from a “strong-buy” rating to a “hold” rating in a report on Friday. Cibc Captl Mkts lowered shares of ARC Resources from a “strong-buy” rating to a “hold” rating in a report on Friday. MKM Partners set a C$34.00 price target on ARC Resources and gave the company a “buy” rating in a research note on Friday, December 19th. UBS Group downgraded shares of ARC Resources from a “strong-buy” rating to a “hold” rating in a research report on Friday, December 12th. Finally, Jefferies Financial Group cut their target price on ARC Resources from C$28.00 to C$27.00 in a research report on Tuesday, January 20th. Two equities research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and seven have issued a Hold rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of C$29.21.

ARC Resources Trading Up 0.7%

TSE:ARX opened at C$23.00 on Monday. The company’s 50 day moving average price is C$25.13 and its 200-day moving average price is C$25.57. The company has a quick ratio of 0.42, a current ratio of 1.14 and a debt-to-equity ratio of 30.05. ARC Resources has a 52 week low of C$21.14 and a 52 week high of C$31.56. The stock has a market cap of C$13.12 billion, a price-to-earnings ratio of 10.50, a PEG ratio of 0.29 and a beta of 0.00.

ARC Resources (TSE:ARX) last released its quarterly earnings data on Thursday, February 5th. The oil and gas exploration company reported C$0.46 EPS for the quarter. The company had revenue of C$1.58 billion during the quarter. ARC Resources had a return on equity of 14.60% and a net margin of 20.95%. On average, equities research analysts forecast that ARC Resources will post 2.7255139 earnings per share for the current fiscal year.

Key Headlines Impacting ARC Resources

Here are the key news stories impacting ARC Resources this week:

• Positive Sentiment: BMO Capital Markets trimmed its price target from C$33.00 to C$28.00 but kept an “outperform” rating, signaling continued confidence in ARC’s medium‑term outlook despite the cut. BMO target cut
• Positive Sentiment: Royal Bank of Canada lowered its target from C$32.00 to C$28.00 while maintaining an “outperform” rating, another vote of relative confidence from a major bank even as estimates were trimmed. RBC target cut
• Positive Sentiment: Desjardins cut its target to C$27.00 (from C$31.00) but kept a “buy” rating, indicating the firm still sees upside after adjusting assumptions. Desjardins note TickerReport
• Neutral Sentiment: Raymond James lowered ARC from “outperform” to “market perform” and cut its PT to C$28.00 (from C$31.00), a move that pares conviction but stops short of a sell signal. Raymond James downgrade
• Neutral Sentiment: National Bankshares moved ARC to “Sector Perform” (neutral), another sign of cautious positioning among coverage analysts. National Bankshares
• Negative Sentiment: CIBC World Markets downgraded ARC from “outperform” to “neutral” and cut its price target to C$25.50 (from C$27.50), removing a previously bullish stance and contributing to selling pressure. CIBC downgrade
• Negative Sentiment: Additional coverage shifts include cuts to “Hold” at National Bank of Canada and at CIBC Capital Markets, signaling broader downgrades across the broker community. Natl Bk Canada CIBC Capital Mkts
• Negative Sentiment: Market reaction: multiple reports note the stock fell in the double‑digits following the analyst downgrades, reflecting investor selling on reduced earnings/target visibility. Market reaction

About ARC Resources

ARC Resources is an independent energy company engaged in the acquisition, exploration, development, and production of conventional oil and natural gas in Western Canada. The company produces light, medium, and heavy crude, condensate, natural gas liquids, and natural gas. Production averaged 163.6 thousand barrels of oil equivalent per day in 2020, and the company estimates that it holds approximately 879 million boe of proven and probable crude oil and natural gas reserves.