RE:CPG
Globe says Crescent Point upgraded to "buy" from "hold"
2021-01-08 08:20 ET - In the News
The Globe and Mail reports in its Friday edition that Canaccord Genuity analyst Anthony Petrucci upgraded Crescent Point Energy ($3.49) to "buy" from "hold." The Globe's David Leeder writes in the Eye On Equities column that Mr. Petrucci raised his share target to $4.50 from $2.75. Analysts on average target the shares at $3.09. Mr. Petrucci says, "We believe CPG represents a compelling way to play a rebound in oil prices, particularly given the impact increased cash flow assumptions have on relative debt levels, and the financial discipline shown by management." He adds in a note: "We believe further COVID-19 lockdowns will continue to create consumption headwinds in the near term. ... On the supply side, there has been a material decline in U.S. shale production, with production down 1.5MM bbl/d since January, 2020. More recently, WTI surged to the $51 (U.S.) per barrel level for the first time in 10 months following the surprise decision by Saudi Arabia to cut 1MM bbl/d of production in February. Oil price momentum and concurrent (broad-based) rally in energy equities is all the more notable given the policy uncertainties associated with a new U.S. presidential administration and the Georgia senate runoff."
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