Globe says Crescent seen "unlocking unrecognized value"
Crescent Point Energy Corp (C:CPG)
Shares Issued 581,666,137
Last Close 6/9/2021 $5.53
Wednesday June 9 2021 - In the News
The Globe and Mail reports in its Wednesday, June 9, edition that ATB Capital Markets analyst Patrick O'Rourke is sticking with his "outperform" call for Crescent Point Energy. The Globe's David Leeder writes that Mr. O'Rourke elevated his share target to $7 from $6.75. Analysts on average target the shares at $6.17. Mr. O'Rourke says some folks might be underwhelmed by the $93-million in cash Crescent Point fetched from the disposition of its remaining non-core southeast Saskatchewan assets. However, he emphasizes the sale is the $220-million reduction in the company's asset retirement obligations, which is almost 25 per cent of its outstanding balance. Mr. O'Rourke says in a note: "Overall, we view the event as positive, though unsurprising. ... We believe that Crescent Point holds a significantly undervalued asset base, with the stock currently trading at a 24-per-cent return to our PDP + Risked Upside based target of $7. With the company's transition plan, CPG refocused its efforts on its core assets and showed a willingness and ability to dispose of non-core assets in order to unlock unrecognized value." The Globe reported on March 26 that Desjardins rated Crescent "buy." It was then worth $5.01.