RE:Is max pessimism already here?A few more details. GLTA
Stifel’s Cody Kwong cut his Vermilion Energy Inc. target to $37 from $42 with a “buy” rating. The average is $37.29.
“Vermilion released its 2023 budget and guidance, that while below consensus on a production and capex basis, targets production growth of 3 per cent year-over-year while it returns 25 per cent of projected FCF to shareholders by increasing its base quarterly dividend by 25 per cent and reinstating its buyback program,” he said. “The balance of FCF will be directed towards the balance sheet with an eye on a $1.0 billion debt target by year-end. VET obtained formal Irish government consent for the Corrib acquisition, which is expected to close by the end of 1Q23. With the lower volumes slightly curtailing cash flow and pace of buyback activity we are reducing our target price to $37.00 per share. With clarity surrounding its return of capital plans, better visibility on the Corrib acquisition closing alongside EU windfall tax clarity (burden moving lower in this update), we believe we are past the point of maximum pessimism on this name, all else equal.”