Buy Rating for Canadian Natural: Strong Financial Performance and Attractive Valuation Amidst Macroeconomic Challenges

In a report released on May 9, Neil Mehta from Goldman Sachs maintained a Buy rating on Canadian Natural (CNQ – Research Report), with a price target of $37.00.

Neil Mehta has given his Buy rating due to a combination of factors that highlight Canadian Natural’s strong financial and operational performance. The company’s stock is considered attractively valued, offering a dividend yield of approximately 6%. Additionally, Canadian Natural has demonstrated consistent quarterly execution and high-quality operations, which have supported robust earnings results. The management’s decision to modestly reduce the FY2025 capital budget further underscores efficiency gains.
Despite the challenging macroeconomic environment and potential downside risks to commodity prices, Mehta emphasizes the company’s competitive breakeven point in the low to mid $40 WTI range, which covers both sustaining capital and dividends. The analyst also notes Canadian Natural’s positive growth outlook and cost efficiency efforts. Looking forward, Mehta is attentive to management’s commentary on operations, growth strategy, capital budget flexibility, shareholder returns, and expectations for WCS differentials in the near and medium term.

According to TipRanks, Mehta is a 5-star analyst with an average return of 8.3% and a 57.95% success rate. Mehta covers the Energy sector, focusing on stocks such as Chevron, APA, and Coterra Energy.

In another report released on May 9, Raymond James also maintained a Buy rating on the stock with a C$52.00 price target.