UPDATE: Sterne Agee Downgrades Denbury Resources to Neutral, Removes PT on Recipe for Underperformance

In a report published Monday, Sterne Agee analyst Tim Rezvan downgraded the rating on

NYSE: DNR) from Buy to Neutral, and removed the $18.00 price target. In the report, Sterne Agee noted, “Friday afternoon's announcement of a lower than expected 2015 dividend, a cautious growth outlook, and two executive departures leads us to review our investment thesis for DNR shares. A $0.40 annual dividend will not support shares at $11, and shares could trade down to $8. Simply put, a ~4% yield for a high-cost oil producer with execution issues is not a compelling investment idea in today's uncertain oil price environment. We step to the sidelines and trim estimates.” Denbury Resources closed on Friday at $11.20.