Headwater Exploration Inc T.HWX

Rating upgrade

[Dixiedee]

50

 

04 Nov 202211:14 ET

 

11:14 AM EDT, 11/04/2022 (MT Newswires) -- Stifel FirstEnergy on Friday reiterated its buy rating on the shares of Headwater Exploration (HWX.TO) while raising its price target to C$10.50 from C$10.00 after the oil and gas producer reported third-quarter results and introduced its first dividend. 

"While the transition to a return of capital model announced in this update did not come as a surprise, the fashion by which it did so, should illicit a swift and meaningfully positive valuation response in our view," analyst Cody Kwong noted. "There was no testing the waters or half measures in its announcement of a $0.10/sh quarterly dividend, which implies a compelling dividend yield of 5.4%. Combining this with a 2023 preliminary budget that will target PPS growth of 38% y/y offers clear differentiation versus its peers. Layer in some exploration success in the greater Marten Hills region and potential drilling catalysts forthcoming from the great Peavine region, and we believe this update is a recipe for the Company regaining its premium valuation in the market. We are increasing our target price to $10.50 per share and maintaining our Buy recommendation."

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 7.34, Change: -0.08, Percent Change: -1.08