The Globe and Mail reports in its Friday, Aug. 30, edition that after plummeting 23.6 per cent on Thursday, Eight Capital analyst Phil Skolnick is expecting further declines for shares of Parex Resources following its "disappointing" quarterly update. The Globe's David Leeder writes in the Eye On Equities column that Mr. Skolnick, predicting the stock will "remain in the penalty box," dropped his recommendation for the Calgary-based company to "neutral" from "buy." Mr. Skolnick slashed his target for Parex shares to $16 from $32.50. Analysts on average target the shares at $25.72. Mr. Skolnick says in a note: "Why not a 'sell' rating? We could see the stock continue to underperform. However, we believe most of the damage has been done with the stock down 24 per cent as of Thursday's close. Also at STRIP pricing on our new estimates, we see a 18.2-per-cent free-cash-flow yield, and a 6.6-per-cent FCF yield after the divided, which supports further buybacks. Finally, we continue to see a strong balance sheet with the company ending this year and next year at an estimated 0.0 times and 0.1 times net debt/CF on STRIP pricing. Nonetheless, we do not see a reason to remain 'buy' rated."