Matthews boosts Baytex to "sector perform" Baytex Energy Corp (C:BTE)
Shares Issued 235,450,896
Last Close 1/16/2018 $4.08
Tuesday January 16 2018 - In the News
The Globe and Mail reports in its Tuesday, Jan. 16, edition that Altacorp analyst Thomas Matthews upgraded Baytex Energy ($4.08) to "sector perform" from "underperform." The Globe's David Leeder write in the Eye On Equities column that Mr. Lupick raised his share target to $5.75 from $4.25. Analysts on average target the shares at $4.26. Mr. Matthews says in a note: "We do not think that anyone will disagree that Baytex is one of the highest beta ways to play a crude price recovery in our coverage universe due to the leverage it currently carries on the balance sheet (2018 year-end debt-to-cash flow 4.0 times) and growth/economics of its Eagle Ford play at Karnes County, TX. Overall, although leverage is still high (4.0 times debt-to-cash flow) we believe the discount to our NAV cannot be overlooked. On a valuation standpoint, the company now trades at a discount to its peers (5.3 times 2018 enterprise value-to-debt-adjusted cash flow versus 7.2 times average) and with the leverage profile becoming stronger with our new price deck (a decrease in D/CF of 1.2 times), we believe the stock will outperform in the near term."
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