National Bank Target up $3 to $29Target up $3 to $29; reiterate Outperform rating
Overall, with a constructive commodity price environment taking our cost of equity assumption down a further 50 bps to 9.00% (now back to prepandemic levels), combined with the bump to our long-term estimates, our target moves up $3 to $29. Based on a 14.0% total return opportunity, coupled with a $32 sum-of-the-parts valuation based on comparable trading multiples, and a further ~$2/sh valuation upside from additional asset sales (MVP), we reiterate our Outperform rating.