Canaccord Genuity is speculating that Baytex Energy could become a takeover target following the recent departure of President and CEO Anthony Marino.
Canaccord Genuity oil and gas analyst Phil Skolnick believes there could be more pain in store for shareholders of Baytex Energy Corp. (TSX: T.BTE, Stock Forum) as investors digest the impact of President and CEO Anthony Marino’s departure, writes Canaccord Wealth Management in its Morning Coffee report. Shares of Batex were down 3% Monday to $47.20, leaving the company with a market cap of $5.61 billion, based on 118.9 million shares outstanding. The 52-week range is $59.40 and $39.18.
Nevertheless, Skolnick sees two scenarios playing out:
- The company hires a new CEO who maintains the status quo (at the end of the day, this is still a high-quality company);
- The company sells itself.
As a result, Skolnick reiterated his bullish stance but lowered his stock price target to reflect some de-rating associated with Marino’s departure. Canaccord goes on to remind investors that in early April, news sources reported that Petronas, the state-owned Malaysian energy company, is looking to acquire $5 billion plus of natural gas assets in Canada.
Baytex still has to tie in the Pembina well, perhaps under new management they will get it going