02:52 PM EDT, 07/26/2023 (MT Newswires) -- National Bank Financial on Wednesday maintained its outperform rating on the shares of Crescent Point Energy (CPG.TO) and its C$18.00 price target after the oil and gas producer reported second-quarter results.
"We reiterate our thesis, which is premised on strong operating results out of the Montney and Duvernay. In our view, these assets should support sustainable production growth, FCF generation and shareholder returns throughout our forecast period. This outlook, coupled with potential A&D catalysts and a compelling valuation that pegs the company at a ~20% FCF yield, positions Crescent Point with potential re-rate upside, compounding the total return potential for shareholders. Furthermore, potential A&D opportunities could reduce debt, expand margins, enhance inventory and improve costs, while the broader portfolio remains backstopped by a sustainable 15 years of inventory," analyst Travis Wood wrote.
(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: 10.78, Change: +0.37, Percent Change: +3.55