Wunderlich Securities downgraded the Texas-based oil and gas company today to "hold" from "buy," and lowered its price target to $11 from $22.
"Overall there wasn't much more clarity given [at Analyst Day], whether operationally or financially, and as such the uncertainty at Denbury has increased significantly while the macro remains troublesome as well," analyst Jason Wangler said.
"We had previously looked at Denbury's asset base and financial plans as having strong downside protection in an environment like this; but the moves made by management for 2015 and potentially beyond have in our view muted these strengths," Wangler added.
Last week Denbury said it planned to cut its 2015 capital spending by 50%, joining a raft of oil and gas producers scaling back investments due to the recent slide in crude oil prices, Reuters reported.
Oil Prices have plunged about 30% since mid-June on concerns that a global glut of oil would persist into next year, the Wall Street Journal reported, adding that market watchers have become increasingly doubtful in recent weeks that OPEC will cut production to raise prices.