The Globe and Mail reports in its Wednesday, Oct. 15, edition that National Bank Financial analyst Travis Wood, in response to Friday's announcement of Strathcona Resources' decision to abandon its bid for MEG Energy, downgraded Strathcona to "sector perform" from "outperform," citing valuation concerns. The Globe's David Leeder writes in the Eye On Equities column that Mr. Wood gave his Strathcona share target a $4 trim to $38. Analysts on average target the shares at $36.83. Mr. Wood says in a note: "Overall, the revised corporate strategy and outlook as a heavy oil pure-play is largely in line with our expectations. However, based on share price outperformance since our initiation this past June, an expanded valuation multiple (5.7 times, up from 4.3 times in June), higher debt levels, and a compressed FCF outlook, we are downgrading [our rating.] Following the $2.14 -billion distribution in December, we anticipate some short-term price weakness, which could present an opportunity for shareholders to build a position in Strathcona at a more attractive valuation." Mr. Wood says he does not see "any material change" in the Calgary-based company's strategy following Friday's announcement.