OTCPK:PDPYF - Post by User
Post by
CanadianBuckon Jan 20, 2016 12:54pm
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Post# 24477128
PPY- RBC New Report - Outperform and $6/share target.
PPY- RBC New Report - Outperform and $6/share target.
January 19, 2016 Painted Pony Petroleum Ltd. Update with Management
Our view: We met with PPY senior management (Pat Ward, Jason Fleury) for an update which reinforced the current growth plan; the Townsend facility remains on schedule for a late-2016 ramp-up. The stock's 2017 valuation is now well below the peer average, and we believe a successful ramp-up combined with gas pricing stability (incl. Station 2) could result in material upside for the stock.
Attractive valuation, Outperform recommendation maintained.
Despite a variety of commodity price headwinds, the company remains positioned to almost triple output into 2017. Given the company's current discounted valuation (3.4x vs 4.7x for peers in 2017), we expect the stock to perform well as the Townsend ramp shifts into sharper focus.Reiterate Outperform and $6/share price target.