Analyst Jeremy Mccrea of BMO Capital maintained a Buy rating on NuVista Energy (NUVSF – Research Report), retaining the price target of C$19.00.
Jeremy Mccrea has given his Buy rating due to a combination of factors that highlight NuVista Energy’s strong performance and growth potential. The company has demonstrated top-quartile production results, particularly in the Montney region at Pipestone and Gold Creek, which supports its growth strategy without the need for a dividend policy. This is significant as it positions NuVista as one of the few exploration and production companies with the capability to expand without facing investor penalties.
Furthermore, the company’s recent quarterly results exceeded expectations, with production surpassing both BMO’s estimates and market consensus. The strong reserve report, which showed a 150% replacement on a PDP basis, alongside an active program and promising well results, further underscores the company’s robust operational performance. Despite delays in third-party infrastructure, NuVista maintained its guidance, indicating confidence in its future production targets and capital expenditure plans. These factors collectively contribute to the positive outlook and justify the Buy rating.
NUVSF’s price has also changed moderately for the past six months – from $8.920 to $7.990, which is a -10.43% drop .