Vermillion rated BUY
Globe says Vermillion rated "buy" in new coverage
2015-05-06 07:15 ET - In the News
The Globe and Mail reports in its Wednesday edition that Canaccord Genuity analyst Denis Fong commenced new coverage of Vermilion Energy ($56.37) by calling the stock his top pick among Canadian oil and gas exploration and production companies. The Globe's David Leeder writes in the Eye On Equities column that Mr. Fong rates Vermilion "buy." He says it provides a "compelling method for investors to gain exposure to oil and gas." He notes management's record of growth. Mr. Fong says Vermillion's diverse portfolio provides exposure to global pricing. He says the company has long-term growth visibility. He likes its "steadfast" capital prudence and strong balance sheet. Vermillion has significant free cash flow from its Corrib offshore natural gas project in Ireland. Mr. Fong targets Vermillion shares at $70. Analysts on average target the shares at $62.43. Mr. Fong says, "We believe the current premium reflects the robust free cash flow generation profile, its clean balance sheet and its ability show profitable returns despite the current commodity price environment and expect this premium to be maintained." CIBC analyst Jeremy Kaliel said buy Vermillion in The Globe on Jan. 20. It was then worth $52.55