Harris Nesbitt Moves Gasco Energy to Neutral
Harris Nesbitt downgrades Gasco Energy (GSX) to neutral from outperform, citing a less than favorable near-term outlook for natural gas.
Analyst Raymond Deacon believes the risk reward relationship for investing in the stock has deteriorated. He notes the lack of visibility in determining the resource potential of the company's Riverbend Project, uncertain reserves per well, per-well cost overruns, rising infrastructure and environmental costs, as well as chronic free cash flow shortfall. He's concerned that the management doesn't have the skills necessary to meet challenges in moving the company to a mature development stage. He sees 2 cents first quarter earnings per share (EPS.)