National Bank National Bank Financial’s Dan Payne initiated coverage of Logan Energy Corp. with an “outperform” recommendation and $1.35 target.
“We believe it offers a substantial value proposition through multiple thematic tailwinds, including deployment of the significance of its funding to high impact development opportunities that should be magnified by operating leverage (low capital efficiency liquids bias compounded by optimization of underutilized regionally owned infrastructure) and offer option value to continued consolidation, and each in support of maximizing shareholder returns,” he said. “The confluence of these themes, as defined within, gives visibility to over 40-per-cent prospective PPS growth and 60-per-cent associated CFPS growth (as it achieves critical mass at 20 mboe/d over a five-year outlook), and which serves to underpin its prevailing valuation, where we see the stock trading at 7.0 times 2024 EV/DACF, but which could be backfilled through organic growth within the context of available resources and liquidity (arguably currently trading at 3-3.5 times its unrisked organic blue sky potential).”