Thursday, January 20, 2011

Nexen Inc.'s (NYSE:NXY) Next Catalyst Should be Yemen Contract

After selling its stake in Canexus Income Fund, Canaccord sees the next catalyst for Nexen Inc. (NYSE:NXY) being an extension of its contract in Yemen.

Canaccord says, "We are adjusting our estimates to reflect a successful offering and NXY no longer having interest in Canexus. Our 2011 EPS/CFPS estimates decrease to $1.55/$4.95 from the previous $1.60 and $5.05 per share, respectively...For NXY, the next potential event to watch for is the possible extension of its contract in Yemen, which is scheduled to end at year-end 2011."

Canaccord Genuity reiterates a "Hold" rating on Nexen Inc. (NXY), which closed Wednesday at $24.42, gaining $0.07, or 0.29 percent.

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