In a report released yesterday, Jeremy Mccrea from BMO Capital maintained a Buy rating on Paramount Resources (PRMRF – Research Report), with a price target of C$40.00.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Jeremy Mccrea has given his Buy rating due to a combination of factors including Paramount Resources’ strategic shift towards developing its Duvernay properties and the Sinclair area. This strategic pivot follows the company’s recent asset sale to Ovintiv, which has enabled it to focus on high-growth opportunities while maintaining a debt-free status and leveraging a strong management team.
Additionally, the transaction provides significant shareholder value through a special distribution and revised dividend strategy, which is expected to attract investors back after initial tax-related selling. Paramount’s post-transaction financial position is robust, with substantial cash reserves and the potential for valuation expansion as the market begins to recognize the value of its non-producing assets, setting the stage for aggressive growth and increased production in the coming years.
In another report released yesterday, CIBC also maintained a Buy rating on the stock with a C$39.50 price target.
Based on the recent corporate insider activity of 87 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PRMRF in relation to earlier this year.