Media article on OBE for those dont subscibe...Feb 24 Globe says Obsidian seen as a winning turnaround play
2022-02-24 09:05 ET - In the News
The Globe and Mail reports in its Thursday edition that Stifel analyst Cody Kwong sees Obsidian Energy as "a compelling way to gain leverage to a constructive oil quote in the Canadian E&P landscape." The Globe's David Leeder writes in the Eye On Equities column that Mr. Kwong commenced coverage on Obsidian with a "buy" rating and $14 share target. He calls Obsidian "a company whose outlook could be one of the biggest turnaround stories as we emerge from the COVID-19 lows." Analysts on average target the shares at $9.38. Mr. Kwong says in a note: "Not only does Obsidian have outsized leverage to both light oil and heavy oil prices, it also holds a myriad of operational catalysts, including resurgent production growth and underappreciated exposure to one of the hottest plays in the WCSB today, the Clearwater play. ... With the strength in the crude oil quote, we believe Obsidian could be one of the most overlooked stories in our E&P coverage universe. Not only does it have appreciable leverage to oil prices with a very modest hedge book, it also has operational catalysts that could stimulate new interest from institutional shareholders that haven't been paying attention to this story for numerous years."