More Nuttall Details + UpgradeSecond stock in the clip. It is the only one of his top picks that he and his family also own personally. GLTA
https://www.bnnbloomberg.ca/video/eric-nuttall-s-top-picks~2395549
ENERPLUS (ERF TSX)
Enerplus remains the most mispriced energy stock that we can find. With over 10 years of stay-flat inventory, the stock trades at 2.0x EV/CF and a 40 per cent free cash flow yield. This makes no sense to us. At every opportunity, we buy more stock and fair value is 5x their 2023 cash flow = $36.35 = 188 per cent potential upside.
Stifel analyst Cody Kwong increased his Enerplus Corp. (ERF-T) target to $24 from $21 with a “buy” rating. The average is $18.04.
“Enerplus’ 4Q21 estimates were slightly ahead of expectations with volumes tracking the high end of expectations while cash flow was higher with tight Bakken oil differentials,” he said. “Based on continued strength in commodity prices and growing FCF, the Company has elected to execute the full 10-per-cent NCIB by mid-year which will return an incremental $100-million back to shareholders. Reserve additions performance this year was flattering with, prescient acquisition activity leading to recycle ratios of 2.0-3.0 times. With higher oil prices, commitment to accelerated return of capital plans, and a solid asset foundation, we are increasing our target price.”