Sam Burwell, an analyst from Jefferies, maintained the Buy rating on ARC Resources. The associated price target remains the same with C$30.00.
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Sam Burwell has given his Buy rating due to a combination of factors that highlight ARC Resources’ strategic and financial positioning. He notes that the company’s strong free cash flow profile and solid balance sheet had provided considerable flexibility to manage development challenges at Attachie, even without a transaction. The earlier-than-expected sale to Shell therefore suggests ARC is crystallizing value now, rather than bearing the execution risk and extended timelines on its own.
At the same time, Burwell emphasizes that Shell is a particularly logical acquirer given its stake in LNG Canada and its corresponding need for secure dry gas supply, which underpins the industrial rationale for the deal. This buyer fit helps validate the quality of ARC’s resource base while allowing ARC to redeploy capital and streamline its portfolio. With these dynamics in mind, he reiterates a Buy rating and maintains a $30 price target, indicating confidence in further upside from current levels.
In another report released on April 13, RBC Capital also maintained a Buy rating on the stock with a C$28.00 price target.