BMO Reiterates Outperform BMO released an updated report for WCP last night. They mention the recent weakness is a good entry point. Here is an excerpt from the report:
Reiterate Outperform
Whitecap closed the week at $9.50, and has traded in a range of $5.79–10.24 over the previous
52 weeks. We believe the recent weakness of Whitecap represents a good entry point for
investors. As of April 19, 2013, the company’s shares have outperformed the S&P/TSX Energy
Index by ~13% since the beginning of the year. We believe the company is well positioned
given the company’s oil-weighted asset base, solid hedge position and strong management.
Among dividend-paying peers, Whitecap has been among the best-performing stocks year-todate
and has declined less than most of its peers in the past month. Many peers have been
under significant pressure as investors question the sustainability of their dividend payouts. In
our view, Whitecap has begun to differentiate itself with its lower payout ratios and very strong
capital efficiencies. We believe the company is well positioned to deliver similar results in the
future.