Sanchez Energy downgraded at Piper Jaffray on leverage concerns

|By:, SA News Editor

Sanchez Energy (NYSE:SN) is downgraded to Neutral from Overweight with a $6 price target, cut from $14, at Piper Jaffray, which says the company requires higher commodity prices along with larger divestitures to reduce concerns surrounding leverage by a material amount.

The firm notes SN's upside remains strong at nearly 35%, which is above the coverage group's potential return, but "SN's leverage is well above peers increasing the risk profile should commodity prices decline."

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