First stock in the clip. GLTA
https://www.bnnbloomberg.ca/video/shows/market-call/2024/08/16/eric-nuttalls-top-picks-tamarack-valley-nuvista-and-arc-resources/
Tamarack Valley (TVE TSX)
Tamarack is officially out of our dog house, having met or beat expectations for two quarters in a row. Continued deleveraging has allowed it to recently increase shareholder returns to 60 per cent increasing to 75 per cent by the end of next year. It is trading at an 18 per cent free cash flow yield at $80WTI/$3.50 NYMEX. We see the combination of share buybacks plus modest production growth leading to a re-rating from the current forward multiple of 3.3 times closer to five times = $7.00/$8.30 one/two-year price target = 72 per cent/106 per cent potential upside at $80WTI.
TOP PICK
Tamarack Valley Energy(TVE-T)
16/08/2024
He's stuck with it through some real pain. Hit its numbers for 2 quarters in a row, exceeding expectations. Beat on higher production and lower capex. At least 20 years of high-quality, stay-flat inventory. 60% of free cashflow to shareholders, meaningful buybacks. 18% free cashflow yield, 1/2 in buybacks and 1/2 as dividend. Yield is 3.74%.
Sees $8.32 one year out, 71-104% potential upside 2 years out.
(Analysts’ price target is $5.39)
Oil / Gas
Eric Nuttall
$4.060
Owned