10:55 AM EST, 12/07/2021 (MT Newswires) -- RBC Capital Markets raised its target price on Whitecap Resources Inc. (WCP.TO) to $11 from $10 after the company announced consolidation acquisitions and share buybacks on Monday morning.
Analyst Luke Davis maintained an Outperform rating on shares of the Calgary-based oil and gas producer.
Whitecap shares rose $0.34, or 4.6%, to $7.78 in morning trading Tuesday on the Toronto Stock Exchange.
Davis said Whitecap's balance sheet continues to be in good shape, and he expects more acquisitions in 2022.
"Whitecap's consolidating tuck-ins are on brand and continue to add scale in core areas," the analyst said in a note to clients. "We expect management will execute similar deals through 2022 alongside its return of capital strategy."
Davis said Whitecap cancelled 4 million shares (net of equity issues), with 7.1 million more available on its current share buyback program.
"In our view, a premium multiple is warranted by the company's strong balance sheet, FCF profile, and seasoned management team," the analyst said.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 7.77, Change: +0.33, Percent Change: +4.44