TD increases target price to $24.50 TD Investment Conclusion
Whitecap remains our only ACTION LIST BUY amongst our intermediate
coverage universe. This latest acquisition underscores management's ability
to prudently execute on unique opportunities across the WCSB, characterized
by a large OOIP resource that can drive free cash flow while supporting
future organic production and dividend growth. With more than three years
of strong operational execution behind it (CAGR of 11% per debt-adjusted
share) coupled with six quarters of sustainable dividends (including 40%
growth), we are now more comfortable with our longer-term multiple
expansion call and are taking our target multiple higher to reflect this
confidence. We believe that Whitecap will eventually receive a multiple
closer to the likes of ARC, Baytex, Bonterra, Raging River and Vermilion.
Please refer to Exhibit 3 for our newly introduced premium multiple
scorecard which supports our thesis. We reiterate our ACTION LIST BUY
recommendation and are increasing our target price to $24.50/share (from
$20.00).
ciao vito
btw. i love dripping my whitecap shares and will continue to do so in the future.