The value of micro cap stock for Lone Pine Resources Inc. (NYSE:LPR) fell sharply on Tuesday after the company's shares' price target was lowered by analysts at RBC Capital, which likely was due to Lone Pine's announcement on its plans to cut capital spending.
According to Jags Report, RBC lowered its price target from $5.00 to $4.00 in a recent report released to clients. Despite the price cut, the analysts maintain their sector performance rating on the stock. The price cut came after the company, an independent oil and gas explorer, developer and producer in Canada, announced it planned to cut its capital spending in response to lower commodity prices, which have been pushed downward on falling demand.
According to Dow Jones Newswires, RBC said it also lowered the price target after the company reported its second-quarter cash flows were about 15 percent lower than analysts had expected.
The price cut had a major effect on Lone Pine's shares, which were down 27.7 percent to $1.54 as of 2:35 pm on Tuesday, August 14.