The Globe and Mail reports in its Tuesday edition that Desjardins Securities analyst Kristopher Zack says Legacy Oil + Gas ($1.55) is fundamentally undervalued at its current price. The Globe's David Kennedy and David Leeder write in the Eye On Equities column that nevertheless, without a clear company transformation strategy to reposition itself within the new commodity price environment, the analyst is downgrading the stock to "hold" from "buy." Becoming increasingly cautious on the stock amid weak oil prices, the analyst expects to see asset dispositions as the company moves to reduce its debt. Given the company's limited visibility on new strategies though, Mr. Zack has moved to the sidelines. The analyst thinks Legacy's "significant land position" in southeast Saskatchewan is attractive and notes that as long as commodity prices do not dip lower, the company's debt covenants will not become an issue until late this year. He also notes his belief that a weak oil price environment will increasingly favour buyers over sellers. Mr. Zack maintained his $2.75 price target. Analysts on average target the shares at $2.71. The Globe's Michael Bowman recommended buying Legacy on Jan. 7. It was then worth $1.71.