Build momentum !!!
Globe says Baytex shares expected to "build momentum"
2021-12-03 07:51 ET - In the News
The Globe and Mail reports in its Friday, Dec. 3, edition that Raymond James analyst Jeremy McCrea continues to rank Baytex Energy "outperform."
The Globe's David Leeder writes in the Eye On Equities column that Mr. McCrea boosted his share target by 25 cents to $5.75.
Analysts on average target the shares at $4.88. Mr. McCrea says in a note: "We believe that Baytex Energy's 2022 budget strikes the right balance between free-cash-flow generation and modest growth.
A key feature of the company's 2022 guidance and five-year plan is the inclusion of its Peavine Clearwater asset which we believe has the potential to change the narrative on the story.
Combine this asset with other quality plays like the Eagle Ford and heavy oil development and Baytex should have the profitable land positions required to create substantial shareholder value.
With sentiment still generally negative (as seen by the Street's ratings), we think valuation is still relatively attractive given the company's assets and the improving debt situation.
Overall, we expect the company (and share price) to build momentum as the consensus begins to price in the high impact of Clearwater success (that we believe is still understated)."