Raymond James Outperform rerate
From the Birchcliff board: Raymond James has increased its price assumptions for crude oil for 2020 and 2021 to account for recent moves in forward futures prices, while also trimming its assumptions for natural gas pricing. As a result, a number of rating changes were made to intermediate oil and gas stocks that it covers. For 2020, it is now assuming West Texas Intermediate pricing of of US$38.56/bbl versus US $33.25/bbl prior. For 2021, it is now assuming US$41.38/bbl versus US$35.57/bbl prior. In the long term, it now assumes pricing of US$50.00/bbl versus US$45.00/bbl previously. Among Intermediate producers, we are upgrading Birchcliff, Freehold, Kelt, NuVista and TORC to Outperform from Market Perform, along with Crescent Point and Paramount to Market Perform from Underperform, due to the impact of higher Canadian oil pricing; Painted Pony moves to Market Perform from Underperform with reduced leverage risk, analyst Chris Cox said.