NEW YORK (TheStreet) -- Shares of Linn Co. (LNCO) rose 8.3% to $9.92 in morning trading Tuesday as the energy sector rallied thanks in part to Repsol SA's $8.3 billion acquisition of Talisman Energy (TLM) .
Repsol agreed to pay $8 per share for Calgary-based Talisman, a 60% premium to the average stock price during the past month, Talisman said. The Madrid-based company would also assume $4.7 billion in debt.
Linn Co. touched a 52-week low of $8.58 shortly after the market opened Tuesday after Robert W. Baird downgraded the stock to "neutral" from "outperform." But the energy sector rally pulled the stock higher after the initial dip.
The rally occurred despite the continued plunge in oil prices. WTI Crude fell 2.7% to $54.39 a barrel on Tuesday, the lowest price in five-and-a-half years, according to USA Today.
Separately, TheStreet Ratings team rates LINNCO LLC as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate LINNCO LLC (LNCO) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself."