The Globe and Mail reports in its Thursday, June 16, edition that CIBC World Markets analyst Adam Gill commenced new coverage on Pengrowth Energy ($2.40) with a "sector underperformer" rating. The Globe's David Leeder writes in the Eye On Equities column that Mr. Gill targets the shares at $1.85. Analysts on average target the shares at $1.74. Mr. Gill says in a note: "We believe high leverage will remain a long-standing challenge for the company. While management took great precautions to protect the downside in 2016 with a substantial hedging program, we foresee leverage remaining an issue in 2017 as crude stays lower for longer and we believe a number of steps will be required to fix the balance sheet. Operationally, the company has done well at Lindbergh but is unable to expand the project until liquidity is unlocked." The CIBC stockpicker says, "Generally speaking, we believe our investment recommendations reflect a balanced outlook that rewards value creation, business sustainability, and growth while remaining cautious on financial leverage even as the market moves to incorporate higher commodity price assumptions."