Globe says Crescent Point raised to "sector outperform" Crescent Point Energy Corp (C:CPG)
Shares Issued 569,249,140
Last Close 6/8/2022 $13.46
Thursday June 9 2022 - In the News
The Globe and Mail reports in its Thursday edition that Scotia Capital's Jason Bouvier has boosted his recommendation for Crescent Point Energy to "sector outperform" from "sector perform." The Globe's David Leeder writes that Mr. Bouvier raised his share target by $3.50 to $15. Analysts on average target the shares at $14.29. Mr. Bouvier says in a note: "We have Crescent Point trading at a 2023 estimated debt-adjusted free cash flow (strip) yield of 27 per cent, one of the highest in our coverage universe. The company's Duvernay acquisition has played out nicely for the company, as commodity prices/netbacks continue to rise and the company become more efficient operating in the area. Management remains capital disciplined and the balance sheet is improving quickly. We estimate the company will hit its debt target of $1.3-million in Q3/22 (strip). This should pave the way for increased shareholder returns. We believe the stock has underperformed over the past few months on fears that Crescent Point may overpay for additional Duvernay assets. ... We believe management remains disciplined and would not use a price deck above $75 (U.S.) WTI. As such, we feel their current discounted valuation is unwarranted."