News out this morning
Globe says Advantage Energy maintained at "outperform"
2024-06-20 07:37 ET - In the News
The Globe and Mail reports in its Thursday, June 20, edition that National Bank Financial analyst Dan Payne is keeping his "outperform" recommendation for Advantage Energy intact. The Globe's David Leeder writes in the Eye On Equities column that Mr. Payne gave his share target a 50-cent boost to $13. Analysts on average target the shares at $13.85. While emphasizing the company's "complexion of its assets, fundamentals and value drivers (i.e., FCF) are universally improved" through its $450-million acquisition of assets in the Charlie Lake and Montney from Longshore Resources, Mr. Payne thinks the perception of the transaction from investors has "lagged that reality." Mr. Payne says in a note: The outlook of the pro-forma will be to high-grade its development program in both its natural gas and liquids assets, with a view towards optimizing production towards maximizing free cash in support of de-leveraging (likely until its renewed $450-million or less than 1.0 times D/CF debt target is achieved in Q4/25; potentially sooner with outperformance potential, as noted), to which it will look to hedge 30-50 per cent of its production in support." Mr. Payne thinks the long-term prospects of the business have improved.