Nuttall DetailsLast stock in the clip. GLTA
https://www.bnnbloomberg.ca/video/eric-nuttall-s-top-picks~2288321
Enerplus (ERF TSX)
Enerplus represents DEEP value (2.2x EV/CF at $70WTI) and is tremendously mispriced in my opinion. With over 10 years of development inventory the company could privatize itself and become debt free with just 5 years of free cashflow offering free optionality on both inventory depth and oil price upside. Trading at a free cashflow yield of 30 per cent to its market cap we look for the company to launch an aggressive share buyback program in early 2022 equating to potentially 20 per cent of its outstanding shares (75 per cent of 2022 free cashflow to shareholder returns). Our target is 5X 2022 EV/CF = $21.80 = 153 per cent potential upside.
TOP PICK
Enerplus Corp(ERF-T)
23/09/2021
Trading at 2.2x enterprise value to cashflow, which is cheaper than earlier this year. Q1 of next year should see a material share buyback. Trading at a 30% free cashflow yield. The low valuation will be rerated. Could trade at a 5x multiple, which would be a 153% upside. (Analysts’ price target is $12.19)
OIL / GAS
Eric Nuttall
$9.090
Owned