RE:RE:RE:RE:RE:Re: Not a horrible deal
Morning Note from Raymond James
Surge Energy's acquisition of Astra Oil's high quality light-oil assets in Saskatchewan should help right-size the company balance sheet by the end of 2022, according to Raymond James. The company will benefit from minimal debt assumed for the acquisition and from the steadily rising commodity prices, and the investment bank says this should help ease investor concerns who had previously seen the company's above-average leverage as a material barrier in the past. "With its balance sheet repaired, we believe that the company will be well-positioned to become a compelling cash return story for shareholders," the investment bank says. Raymond James has an outperform rating on the stock with a target price of C$1.25. (adriano.marchese@wsj.com)