BMO Capital analyst Jeremy Mccrea maintained a Buy rating on Kelt Exploration yesterday and set a price target of C$9.00.
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Jeremy Mccrea has given his Buy rating due to a combination of factors including Kelt Exploration’s strong financial position and strategic land holdings in the Montney and Charlie Lake areas. The company is leveraging its exploration insights to implement a more aggressive development strategy, which is expected to lead to significant production growth by late 2026, potentially reaching a 50% increase.
Despite some short-term setbacks, such as the delayed start-up of the Albright facility and weak AECO prices leading to a slight revision in production guidance, Kelt’s operational improvements and innovative completion designs are promising. The company’s ability to optimize well performance using machine learning and other techniques suggests a strong potential for enhanced production efficiency and higher liquid content, supporting the positive outlook and Buy rating.
KELTF’s price has also changed moderately for the past six months – from C$6.280 to C$7.700, which is a 22.61% increase.