The AWE Limited (ASX: AWE) share price has been one of the worst performer on the market today and sunk deep into the red.
At the time of writing the energy company’s shares are down almost 4% to 50 cents.
Why are its shares lower?
Although its shares finished the day marginally higher on Monday following the release of its latest quarterly update, not everyone was impressed with its quarter.
In fact, one leading broker decided to downgrade its shares from neutral to a sell rating with a 47 cents price target.
According to a note out of UBS, its analysts noted that the increase in production was ahead expectations, but it was not enough to increase its full-year production guidance beyond the 2.5 to 2.7 mmboe.
As a result, it thinks that AWE’s shares are now overvalued following a strong share price gain over the last few weeks.