Tudor, Pickering, Holt on Monday downgraded its rating on the share of Canadian Natural Resources (CNQ.TO, CNQ) to hold from buy with a C$50.00 price target.

"While we view CNQ's asset quality and reliable execution as world-class, and see recent weakness as more noise-related vs. structural, we're moving to the sidelines on valuation. The premium isn't new, and CNQ may be first to react positively on sudden strength in crude given the upstream-only business model, but beyond valuation (i) we remain cautious on oil macro, (ii) we've become constructive on refining, (iii) we see catalysts as limited, and (iv) we believe tariffs remain a wild card. For context on valuation, we see CNQ at strip trading at FY'25 FCF/EV of TPHe ~7% vs. CAD senior comps averaging ~11%, despite relative underperformance whether YTD (-2% vs. comps +5%) or over the past year (+7% vs. comps +15%). While we've historically pushed back against the valuation bear case (with the view that while expensive vs. CAD seniors, CNQ screens competitive cross-border vs. US large-cap upstream), we believe this argument will carry less weighting in the near-term while tariffs loom in the background ... Looking ahead, we don't doubt CNQ's ability to continue crushing the quarters, and 2025 could bring further operational improvement following recent transactions (all positive, in our view), but for now we see better rate-of-change potential elsewhere among CAD seniors," analyst Jeoffrey Lambujon noted.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 43.99, Change: +0.57, Percent Change: +1.31