Scotia Review, not bad at all.Below is a review from a Scotia Capital analyst. Bottom line, he believes he sell off yesterday was overdone, just read what he says about everything. Certainly not out of the park home, but overall, not bad in my estimates.
Cameron Bean | Analyst (Scotia Capital Inc. - Canada)
(August 07, 2019):OUR TAKE: Mixed. We have updated our estimates following NVA's Q2/19 results release (see our Alert). Market reaction to the company's results was decidedly negative with the stock down ~18% at midday (versus peers down6% to 8%). We believe the reaction is overdone. The CFPS miss was entirely the result of lower-than-expected NGL pricing - other metrics and reported well results were in line with or better than forecast. 2019 capex and guidance were reiterated. The discussion around moderating growth (and the outspend) and focusing on free cash flow in 2021 and beyond should have been a welcomed development. Nevertheless, it appears that the prospect of deletion from the TSX Composite Index and the negative headline were too much to overcome. We have updated our numbers and are making a moderate reduction to our target multiple (now 5.5x) and one-year target price (now $5.00/share) on our reduced 2019E CFPS forecast and long-term growth outlook. Nevertheless, we believe the stock offers rebound potential after the September 13, 2019 Index announcement and value priced torque to oil and condensate prices.