From Banque Nationale March 11thMaintain Outperform Rating & $10.50/sh Target Price Solid results & returns continue to be noted, as the significance of the company’s operational momentum continues to manifest material shareholder value.
HWX is poised for a 67% return (vs. peers 41%) on leverage of -0.8x (vs. peers 0.5x), while trading at 6.3x 2022e EV/DACF (vs. peers 3.5x), and at strip is poised for a 77% return (vs. peers 58%) on leverage of -0.8x (vs. peers 0.2x), while trading at 4.9x 2022e EV/DACF (vs. peers 2.5x).
We are maintaining our Outperform rating and $10.50/sh target price (unchanged). Our target price is predicated on a valuation methodology that solely reflects a cash flow multiple and is correlated to an asset value perspective. For HWX, our target price is based on a 2023e EV/DACF cash flow multiple of 8.0x (unchanged).