BMO with $8 Target price BMO’s Tariq Saad reinstated coverage of Cardinal Energy Ltd with a “market perform” rating and $8 target. The average is $8.33.
“Cardinal is an intermediate producer with heavy and light/medium oil producing assets primarily in Alberta and Saskatchewan. We see the potential for future upside via the development of the company’s SAGD projects at Reford, which should add material free cash flow when fully developed and will complement Cardinal’s existing low decline rate. That said, Cardinal’s shares trade at a sizable premium, and we believe that some of its peers currently offer better relative value,” he said.