Raymond James Raise Target Raymond James analysts Jeremy McCrea and Michael Shaw made a series of target adjustments to energy sector stocks in their coverage universe in response to updates to the firm’s commodity price assumptions.
It lowered its WTI estimate for 2022 by 6 per cent to US$95.70 from US$101.70 per barrel and 2023 by 8 per cent to US$80.80 from US$88 to “match the move lower in the forward prices.” Its long-term price assumption beyond 2023 remains US$70.
For natural gas, the firm raised its 2022 NYMEX price projection by 8 per cent to US$6.70 per thousand cubic feet from US$6.20 and 2023 by 7 per cent to US$5.60 from US$5.20. Its long-term assumption beyond 2023 remains US$3.50/mcf
With those changes, the analysts’ target adjustments for senior producers were:
- Canadian Natural Resources Ltd. (, “outperform”) to $90 from $85. The average on the Street is $95.50.
- Imperial Oil Ltd. ( “market perform”) to $71 from $70. Average: $74.71.
- Suncor Energy Inc. ( “outperform”) to $53 from $50. Average: $54.72.
For intermediate producers, their changes were:
- Birchcliff Energy Ltd. ( “outperform”) to $13 from $13.50. Average: $14.25.
- Paramount Resources Ltd. (, “outperform”) to $45 from $40. Average: $41.95.
- Tamarack Valley Energy Ltd. ( “strong buy”) to $7.50 from $6.50. Average: $7.48.
- Whitecap Resources Inc. ( “strong buy”) to $17 from $16. Average: $15.31.