This morning's G&M Scotia Capital analyst Cameron Bean and Jason Bouvier expect oil prices to “remain robust due to resilient demand and discipline among Canadian producers.”
“Stronger prices are supported by excess egress, declining inventories, and tightening supply heading into the Q2/22 turnaround season,” they said.
After the firm raised its commodity price deck forecasts, including increases for WTI of 17 per cent in 2022 and 23 per cent in 2023, the analysts hiked their cash flow per share projections for oil-weighted names by 21 per cent and 38 per cent and for gas-weighted names by 13 per cent and 27 per cent.
That led them to hike target prices for stocks in the sector.
For large-cap companies, their changes were:
- ARC Resources Ltd. (
, “sector outperform”) to $27 from $26. Average: $21.39. - Canadian Natural Resources Ltd. (
, “sector outperform”) to $88 from $80. Average: $84.62. - Cenovus Energy Inc. (
, “sector outperform”) to $25 from $24. Average: $24.82. - Imperial Oil Ltd. (
, “sector outperform”) to $72 from $68. Average: $62.21. - Ovintiv Inc. (OVV-N/OVV-T, “sector outperform”) to US$60 from US$56. Average: US$61.80.
- Suncor Energy Inc. (
, “sector outperform”) to $46 from $45. Average: $46.86. - Tourmaline Oil Corp. (
, “sector outperform”) to $98 from $87. Average: $71.08. -