Analyst upgrade... Shares in Surge Energy Inc. are up more than 100% so far this year, nearly double the Canadian oil and gas sector as a whole. Raymond James analyst Jeremy McCrea thinks there’s still plenty of upside left.
Part of the reason for his optimism is Surge’s $245-million purchase of Enerplus Corp.’s Canadian assets earlier this month. “The acquisition SGY announced adds size,” said the analyst, further building on Surge’s holdings in its core areas. It also positions the company to have a larger market cap, making it more likely to be added to the TSX Composite Index.
Mr. McCrea also notes interest in the name is quickly building with institutional investors, based on search enquiries on the Bloomberg terminal.
His price target on the stock is C$15 and he has an “outperform” rating. The stock closed Wednesday at C$9.33.