Paramount Resources (PRMRF – Research Report), the Energy sector company, was revisited by a Wall Street analyst yesterday. Analyst Jeremy Mccrea from BMO Capital maintained a Buy rating on the stock and has a C$25.00 price target.
Jeremy Mccrea has given his Buy rating due to a combination of factors that highlight Paramount Resources’ potential for growth and value creation. The company’s unique position in the energy sector is underscored by its non-producing and hard-to-value assets, such as its holdings in Cavalier and Sinclair, as well as its gas prospects in the Horn River/Liard Basin. These assets have been largely overlooked by investors, yet they hold significant potential for future development and profitability.
Paramount’s focus on the Duvernay development program is another key factor in McCrea’s rating. The company has maintained its guidance and demonstrated consistent performance, with a production guidance for 2025 set between $760-790 million and volumes at 37.5-42.5 mboe/d. Additionally, the company’s profitability metrics are strong, with a notable increase in PDP reserve value compared to capital employed, indicating efficient capital use and value creation. This combination of strategic asset development and financial performance underpins McCrea’s positive outlook on Paramount Resources.
Mccrea covers the Energy sector, focusing on stocks such as Obsidian Energy, Paramount Resources, and Tamarack Valley Energy. According to TipRanks, Mccrea has an average return of 15.1% and a 48.24% success rate on recommended stocks.
In another report released on February 24, Jefferies also maintained a Buy rating on the stock with a C$21.00 price target.