SGY, a Canaccord top pick$10.50 target
"Across our coverage universe, we continue to highlight WCP and TPZ as top ideas alongside SGY as our smid-cap oil-weighted pick.
Finally, we highlight SGY as a top idea in the mid-cap space for investors seeking out oil exposure. SGY stands atop our coverage universe for oil/liquids weighting at ~92% in 2025 (CGe). This brings greater than 2:1 gearing for percentage changes in CFPS relative to WTI. In a scenario with pricing exceeding our US$70.00/bbl WTI forecast for 2025, this would result in a wedge of FCF above and beyond the $121M we forecast this year that could be put to work continuing with share buybacks (thereby improving the sustainability of its 8.5% dividend) and/or M&A opportunities (which could be supplemented by an undrawn $250M credit facility)."