TSXV:CEN.H - Post by User
Post by
retiredcfon Jan 17, 2012 9:52am
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Post# 19411412
Increased price target
Increased price target CIBC World Markets released a report this morning in which they have reduced the prices of Brent crude going forward (notwithstanding today's action). As a result, they lowered the targets on some of their stocks with one exception (CEN) as explained below. GLTA.
"The reduction in Brent pricing was offset by Coastal Energy’s (CEN–SO) announcement that it had negotiated a new two-year oil sales agreement. The historical discount to Dubai pricing (Dubai trades at a ~$2.50/Bbl discount to Brent) was $4.75/Bbl and the new negotiated discount is $1.70/Bbl. Once factoring in the new negotiated discount the Coastal NAV increased by
.50/sh, leading to an increase in price target from $22.00/sh to $22.50/sh. Our Sector Outperformer rating remains unchanged."