RE:RE:National Bank Target $8.00National Bank is forecasting a 10% and 11% increase in cash flow for 2024 and 2025. That seems to be the reason why their share price forecast for BTE got a similar percentage bump up.
Their target EV/DACF ratio is only 3.0 which is the lowest compared to their peers. Most similar companies trade at a ratio of 4.5 times. There is lots of room for BTE to head higher than $8.00.
Most people under estimate the additional cash flow being generated at current WTI / WCS prices. BTE needs to stick with their program and keep paying down debt. No need to acquire any more companies. They already have lots of drilling opportunities on both sides of the border. Maybe in a couple of years the market will reward BTE with a higher EV/DACF multiple.