BMO Capital analyst Tariq Saad maintained a Buy rating on Athabasca Oil yesterday and set a price target of C$7.00.
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Tariq Saad has given his Buy rating due to a combination of factors that highlight Athabasca Oil’s strong performance and future potential. The company reported second-quarter results that were in line with expectations, despite an increase in consensus estimates. This reflects the company’s ability to meet market expectations even as they rise. Additionally, Athabasca Oil’s production is projected to reach the upper end of its guidance, driven by robust thermal performance in the first half of the year and ongoing developments at the Leismer expansion project.
Furthermore, the company stands out with one of the cleanest balance sheets among its peers, maintaining a net cash position and a long reserve life. The valuation of Athabasca Oil is considered attractive, trading at a multiple in line with its peers, but with a higher growth potential. The company’s commitment to shareholder returns, evidenced by ongoing buyback activities, and its improving free cash flow yield, further support the Buy rating. These factors collectively suggest a promising outlook for Athabasca Oil, justifying the positive recommendation.
According to TipRanks, Saad is a 3-star analyst with an average return of 6.0% and a 69.23% success rate. Saad covers the Energy sector, focusing on stocks such as Athabasca Oil, Advantage Energy, and International Petroleum Corporation.
In another report released on July 17, National Bank also maintained a Buy rating on the stock with a C$7.00 price target.