In a report released today, Luke Davis from Raymond James reiterated a Buy rating on ARC Resources, with a price target of C$33.00.
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Luke Davis has given his Buy rating due to a combination of factors that highlight ARC Resources’ strong position and future potential. Despite initial concerns, the company’s recent quarterly results met expectations, with management expressing confidence in the integration of Attachie and Kakwa projects. This suggests that past challenges are being effectively managed, and the focus on sustainability and integration is likely to appeal to investors.
Furthermore, ARC Resources demonstrated financial resilience with a better-than-expected cash flow per share, driven by improved cash costs. The company’s strategic budget for 2026 prioritizes shareholder returns and includes significant capital allocation towards key projects, indicating robust production growth and financial health. With a strong free cash flow yield and a commitment to returning capital to shareholders, ARC Resources is positioned for an implied total return of approximately 20%, justifying the Buy rating.
In another report released today, National Bank also maintained a Buy rating on the stock with a C$30.00 price target.