Raymond James analyst Luke Davis Mr. Davis initiated coverage of the following companies:
- Athabasca Oil Corp. with a “market perform” and $5.50 target. The average is $6.33.
- Baytex Energy Corp. with a “market perform” rating and $5.50 target. Average: $6.15.
- Freehold Royalties Ltd. with a “market perform” rating and $16 target. Average: $17.50.
- Headwater Exploration Inc. with a “market perform” rating and $8.50 target. Average: $9.71.
- Obsidian Energy Ltd. with a “strong buy” rating and $15 target. Average: $14.
- PrairieSky Royalty Ltd. with a “market perform” rating and $33 target. Average: $29.98.
- Surge Energy Inc. with an “outperform” rating and $9 target. Average: $11.78.
- Tamarack Valley Energy Ltd. with a “market perform” rating and $5 target. Average: $5.36.
- Veren Inc. with a “strong buy” rating and $13 target. Average: $13.58.
- Whitecap Resources Inc. with a “market perform” rating and $13 target. Average: $13.56.
“Our top E&P picks are quite selective and oriented around where we see large dispersions in fundamental value vs what the market is currently pricing in. We also consider ability to weather potential near-term commodity price volatility, asset duration/inventory depth, and clear catalysts that we think could move the needle on valuation. We highlight OBE (SB), VRN (SB), and SGY (OP),” he said.