April 18, 2019 / 3:07 PM / a month ago

BUZZ-Husky Energy: Few clean quarters should start to narrow discount to peers - TD

** Shares of Canadian oil producer rise 1.4% to C$14.45 after TD Securities raises stock to “buy” from “hold” and price target by C$1 to C$18

** Brokerage says downgrade in October was largely due to Husky’s intended bid to buy MEG Energy Corp and increasing its exposure to heavy sour crude

** HSE walked away from the deal in January; “this caused some to question management’s decision-making” - brokerage

** Believe 2-3 clean quarters should start to narrow the discount to its peer group - TD Securities

** HSE shares up ~4% YTD, while rivals Cenovus Energy up ~40% and Canadian Natural Resources up ~25%

** Says HSE has work cut out to convince market that environmental violations related to White Rose oil spill in November behind it

** Says HSE well positioned to benefit from IMO 2020

** 2 of 21 brokerages rate the stock “buy”, 14 “hold” and 5 “sell” or lower; median PT C$16.50 (Reporting by Debroop Roy and John Benny in Bengaluru)

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