Scotia Capital has reaffirmed its buy thesis and $20 stock price target for
Whitecap Resources Inc. (
TSX: T.WCP,
Stock Forum), a dividend-paying oil-focused company with assets in western Canada.
“Whitecap gets top marks on all the key metrics that we look for in selecting a well-run company,’’ said Scotia analyst William Lee in a research report.
Scotia posted the report on a day when Whitecap shares eased 1.7% to $16.39, leaving a market cap of $4 billion, based on 244.6 million shares outstanding. The 52-week range is $16.97 and $10.02.
Lee went on to say that Scotia remains very bullish on Whitecap – "based on our forecasts, we see the possibility of a dividend increase in 2015 of 45+% and view Whitecap as one of the most sustainable in the income group."
We believe that WCP shares should start to trade closer to other high quality light oil producers such as
Crescent Point Energy Corp. (
TSX: T.CPG,
Stock Forum), Lee said.
Crescent Point shares were off 2.3% to $46.09 on Tuesday, leaving a market cap of $19.3 billion, based on 419.3 million shares outstanding. The 52-week range is $48.68 and $35.25.
Recently, Whitecap announced a cash dividend of $0.0625 per common share, payable on July 15, 2014 to shareholders of record on June 30, 2014.