Analyst Jeremy Mccrea of BMO Capital maintained a Buy rating on Logan Energy Corp, with a price target of C$1.00.
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Jeremy Mccrea’s rating is based on Logan Energy Corp’s strong track record in mergers and acquisitions, which has historically led to significant shareholder value. The company’s management team, with insiders holding a substantial 19% stake, aligns well with growth-oriented investors, aiming for a 50% annual growth target. Despite a recent downward revision in guidance due to weaker well performance in certain areas, the company reported record production levels and strong results from its Lower Montney wells at Simonette, which could bolster investor confidence.
Logan Energy’s quarterly production exceeded BMO’s expectations, and the company benefited from oil-weighted production growth despite weak gas prices. While challenges were noted in the Duvernay and Pouce Coupe wells, the company remains optimistic about future improvements, particularly with plans to use 3D seismic data to enhance performance. The unchanged capital expenditure and strategic plans to address production issues further support the Buy recommendation, as they demonstrate Logan Energy’s commitment to maintaining and potentially increasing its production levels.
Mccrea covers the Energy sector, focusing on stocks such as Baytex Energy, Samoth Oilfield, and Parex Resources. According to TipRanks, Mccrea has an average return of 21.1% and a 59.40% success rate on recommended stocks.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a C$1.25 price target.