Analyst Randy Ollenberger from BMO Capital maintained a Buy rating on ARC Resources (AETUF – Research Report) and keeping the price target at C$32.00.
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Randy Ollenberger has given his Buy rating due to a combination of factors, primarily ARC Resources’ impressive financial performance and production growth. The company reported better-than-expected results, with lower operating costs contributing to a cash flow that surpassed both consensus and estimates. This financial strength is complemented by a production record, largely driven by significant output from the Attachie and Kakwa regions.
Moreover, ARC’s reserves have increased, supported by new developments and technological enhancements. As a leading producer of condensate in Canada, ARC benefits from a strong balance sheet and a diversified natural gas market presence. The company’s strategic focus on returning free cash flow to shareholders, alongside its discounted trading price compared to peers, underscores its potential for high delivered yields in the coming years.
In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a C$32.00 price target.