Ahead Of The Bell: Whiting Downgraded To "Neutral"

NEW YORK (AP) — Shares of Whiting Petroleum Corp. rallied over the summer to a fair value, an analyst said on Wednesday as he downgraded the independent oil and gas company's stock.

Since early July Whiting's shares have risen nearly 89 percent. Shares fell 55 cents in premarket trading to $57.77.

SunTrust Robinson Humphrey analyst John Gerdes downgraded the stock to "Neutral" from "Buy," with a $60 price target.

While Whiting's stock trades inline with its peers, Gerdes said it should experience "essentially no production growth" in the next two years, whereas its competitors should grow 8 percent per year.

Additionally, Gerdes expects the company's heavy oil-weighted business to present another headwind as oil prices move toward $60 by year-end, given the likelihood of oversupply in the fourth-quarter.

Benchmark crude for October delivery settled at $70.93 a barrel on Tuesday.