Analyst Menno Hulshof from TD Cowen maintained a Buy rating on Baytex Energy and increased the price target to C$4.75 from C$4.00.
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Menno Hulshof has given his Buy rating due to a combination of factors that highlight Baytex Energy’s strategic repositioning and financial strength. The company has exited its Eagle Ford operations for a substantial sum, which will be used to accelerate development in conventional heavy oil and deleverage its balance sheet. This move is expected to streamline Baytex Energy’s operations, making it more agile and well-capitalized, which is appealing to investors.
Furthermore, Baytex Energy’s Canadian inventory provides a strong runway for growth, with a significant number of drilling locations identified. The company plans to enhance its production capabilities and has a robust plan for share buybacks, supported by a strong net cash position. These strategic initiatives are aimed at improving the company’s financial metrics and sustaining growth, which underpin Hulshof’s positive outlook on Baytex Energy.
In another report released yesterday, BMO Capital also upgraded the stock to a Buy with a C$6.00 price target.
BTE’s price has also changed dramatically for the past six months – from C$2.470 to C$4.250, which is a 72.06% increase.