The Globe and Mail reports in its Wednesday, July 26, edition that Desjardins Securities analyst Chris MacCulloch has lowered his recommendation for Peyto Exploration & Development to "hold" from "buy." The Globe's David Leeder writes that Mr. MacCulloch shaved his share target by $2 to $13. Analysts on average target the shares at $15.18. Mr. MacCulloch expects the impact of the wildfires in Western Canada will dominate focus during the coming second quarter earnings season for Canadian energy companies. Mr. MacCulloch says in a note: "For reference, we have trimmed our 2024 production forecast [for Peyto] to 107,500 boe/d (from 115,000 boe/d), which would imply limited organic growth of 4 per cent from 1Q23 levels (from 12 per cent). Meanwhile, elevated debt levels remain an overhang for the company, with a 2024 strip D/CF of 0.8 times, the highest among natural gas–weighted producers within the Desjardins E&P coverage universe, which contributes to investor fears of a potential dividend cut in the absence of a more pronounced recovery in natural gas prices. As a result, the stock has struggled to gain market traction this year, despite offering a best-in-class dividend yield of 11.5 per cent."