In the News
Crescent Point elevated to "outperformer"
2020-12-17 07:16 ET -
The Globe and Mail reports in its Thursday, Dec. 17, edition that CIBC World Markets sees demand for oil and consumer confidence increasing with the roll-out of the COVID-19 vaccine. The Globe's David Leeder writes that CIBC says the macro backdrop for the energy industry remains "wrought with uncertainty." It sees "glimmers of optimism" for 2021. CIBC says in a note: "This year was extraordinarily difficult for the energy sector following the unprecedented impact of [COVID-19] and a brief OPEC+ price war. Given its relative performance vs. the broader index, we understand why investors have been quick to shy away from the sub-sector. We believe strengthening prices will drive compelling free cash flow valuations in the space relative to other industries. Despite the strength in natural gas fundamentals, we carry an increasing bias towards oil-weighted companies in 2021. We remain biased towards companies with solid fundamentals, including strong balance sheets, low sustaining capital requirements, and above-average free cash flow (FCF) generation." Analyst David Popowich raised Crescent Point Energy to "outperformer" from "neutral" with a $4.50 share target, up from $31.
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