Updated Targets BMO’s Randy Ollenberger cut his Strathcona Resources Ltd. target to $28 from $31 with a “market perform” rating, while TD Securities’ Menno Hulshof lowered his target to $32 from $34 with a “hold” recommendation. The average is $37.75.
‘Strathcona reported lower-than-expected cash flow on slightly higher production,” Mr. OIllenberger said. “The company released its 2024 capital budget of $1.3 billion (vs. consensus of $1.35 billion), which is expected to yield volumes of 190-195 mboe/d (versus consensus of 196 mboe/d). The budget takes into account $150 million of brownfield growth capital, which will add over 25 mb/d of incremental production capacity by 2026. We believe that Strathcona’s limited float will continue to constrain share performance relative to peers.”