Jefferies analyst Sam Burwell maintained a Buy rating on ARC Resources yesterday and set a price target of C$33.00.
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Sam Burwell has given his Buy rating due to a combination of factors including ARC Resources’ performance and strategic decisions. Despite some challenges such as lower than expected Attachie volumes and gas curtailments, ARC Resources managed to meet production expectations and exceeded cash flow per share forecasts.
Additionally, the company’s updated guidance for fiscal year 2025 includes strategic moves like the Kakwa acquisition and continued gas shut-ins, which are expected to impact free cash flow due to increased capital expenditures. Furthermore, ARC Resources is enhancing its Attachie Phase II project through the TDZE deal, which adds depth and potential for future growth. These strategic initiatives and the company’s ability to maintain production levels despite challenges contribute to the positive outlook and justify the Buy rating.
In another report released on July 21, RBC Capital also maintained a Buy rating on the stock with a C$34.00 price target.