What the Analysts Say: Talisman EnergyWhat the Analysts Say: Talisman Energy
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Raymond James analyst Stephen Calderwood continues to rate the shares
of Talisman Energy Inc. (TSX-TLM, $19.79) a strong buy. His six- to
12-month target price of $25.50 remains unchanged.
In a recent update, Talisman set its fiscal 2007 exploration and
development budget at $4.855 billion, in-line with the analyst's
forecast. The analyst notes that "78 per cent of the total budget is
focused on [Talisman's] two main core areas of North America and the
North Sea."
In terms of production, the company now expects its 2007 output to
average 485,000 barrels of oil equivalent per day (boe/d). The analyst
notes that, due to asset sales, this is "virtually unchanged" from
this year's anticipated production.
Mr. Calderwood also points out that, since May 2006, the company has
bought back 27.5 million common shares. He expects "share buybacks to
accelerate over the next six months." Consequently, he expects the
buyback program to add at least five per cent to per-share production
growth in fiscal 2007, adding that this will likely be closer to seven
or nine per cent.
For fiscal 2007 and 2008, Mr, Calderwood has set his fully diluted
cash-flow-per share estimates at $4.23 and $5.20, respectively.
The analyst also notes that Talisman currently trades at a discount.
Talisman Energy Inc. is an independent oil and gas producer with
operations in Canada, the North Sea, Indonesia, Malaysia, Vietnam,
Algeria and the United States. Talisman's subsidiaries also conduct
business in Trinidad, Colombia, Qatar and Peru.
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