GREY:ARKXF - Post by User
Post by
teeveeon Nov 26, 2014 9:37am
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Post# 23165079
RTK target increased to $2.75
RTK target increased to $2.75Artek Exploration Ltd. (RTK): Third Quarter Modestly Behind Expectations, At Inflection Point, Uplift to Initial Montney Deliverability Although We Remain Inconclusive on Longer Term Implications
Artek’s third quarter results trailed our expectations on both a production and cash flow basis, with production virtually flat with the same period in 2013 as Management continues to sort through various bottlenecks in terms of infrastructure requirements, with improved results from larger more efficient fracture deliveries in the Doig and Montney yet to materialize in the financials. While we have increased our target price to $2.75 per share on a revised NAV view, we have maintained our Market Perform ranking at this stage, identifying the stock trading at a premium in its peer group barring a step-change in its growth outlook and/or a firm validation that the NAV premise is far larger than the market is ascribing today.