RE:national bank 2.50 target raised to outperformThis target implies 2.60$ nymex for 2021 and ev/editba ratio of 4.
they are conservative cause the ratio should be 5 and nymex should be 3.00$ In 2021
They said in their report that their 2.60$ nymex forecast can be too low:
Looking forward to 2021, our assumptions for NYMEX and AECO have decreased marginally and continues to stay in line with strip at US$2.60/mcf and C$2.25/mcf, respectively (vs. strip US$2.60/mcf & C$2.30/mcf), but as mentioned above, we note several headwinds which could result in a surprise to the upside for the commodity.
Target should be 3.50$ not 2.50$