desjardins notenice upgrade posted to the G&M this a.m.:
“Fast-forward to the present, we see Vermilion slowly regaining its ‘Eye of the Tiger’ through prudent balance sheet management in the face of rising commodity prices, which has now put it on track to meet its D/CF target of 1.5 times by next year. As a result, we expect the company to resume its dividend at some point in 2022, ideally on the back of a strategic acquisition, which could help accelerate the balance sheet clean-up. However, we also expect a more modest dividend payout, as a humbler Vermilion rises from the ashes of last year’s price collapse with a renewed focus on financial sustainability as one of its core principles, along with operational excellence and retaining its leadership position as a Canadian ESG champion.”
The analyst has a “buy” rating and $13 target for Vermilion shares. The average is $12.23.
Chris MacCulloch, Desjardins