In the news-Stockwatch today
Globe says Whitecap still a "strong buy" for McCrea
2021-09-27 07:59 ET - In the News
The Globe and Mail reports in its Saturday, Sept. 24, edition that Raymond James analyst Jeremy McCrea has reaffirmed his "strong buy" recommendation for Whitecap Resources. The Globe's David Leeder writes in the Eye On Equities column that Mr. McCrea boosted his share target to $10 from $9. Analysts on average target the shares at $8.95. Mr. McCrea says in a note: "As companies become larger, there is less focus on well economics and more emphasis on FCF generation. Unfortunately, as a result, investors can miss some important inflection points where share price returns can be the greatest. We believe that one of these inflection points is happening today at Whitecap given its acquisitions this year and where we are seeing capex being directed now (i.e., to much higher return plays). We look at how this shift will impact the future of the company given its low base decline, inexpensive valuation and investor sentiment that doesn't appear to appreciate the fundamental changes we've seen this year. With annual discretionary cash flow now reaching 20 per cent of Whitecap's market-cap, there should be plenty of shareholder 'friendly' catalysts that begin to drive investors back into the stock near-term."
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