Globe says Canadian Natural rated "outperform" 2019-01-29 08:39 ET - In the News
The Globe and Mail reports in its Tuesday edition that Credit Suisse analyst Manav Gupta says Canadian Natural Resources should benefit from mandatory oil production cuts implemented by the Alberta government in early December. The Globe's David Leeder writes that Mr. Gupta says the move "split the Canadian energy space into 'haves' and 'have nots.'" In a research report released Monday, Mr. Gupta began coverage of Canadian integrated oil companies, emphasizing a "constructive" view of the sector and a preference for "higher beta crude stocks that benefit from mandated production cuts versus others that offer more dividend security in a lower commodity price environment." Mr. Gupts rates Canadian Natural Resources "outperform" and targets the shares at $48. Analysts on average target the shares at $33.92. Mr. Gupta says in a note: "In our view, CNQ offers the best growth profile among Canadian upstream producers. The company is in a position to double its oil sands production at favorable economics. We estimate CNQ will generate $3.4-billion in cash in 2019 after paying a dividend (up 10 per cent year-over-year), which will likely be used for buybacks (stock support) and further debt reduction."