Analyst Aaron Bilkoski from TD Cowen maintained a Buy rating on Peyto Exploration & Dev and increased the price target to C$23.00 from C$21.00.
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Aaron Bilkoski has given his Buy rating due to a combination of factors that highlight Peyto Exploration & Development’s strong financial and operational position. The company demonstrates solid organic growth prospects, with an average annual increase projected at around 9% by 2026. Additionally, Peyto offers one of the highest dividend yields among its peers, supported by substantial hedging strategies that extend through 2026, ensuring stability and predictability in cash flows.
Another contributing factor to the Buy rating is Peyto’s modest financial leverage, which is expected to trend below 1.0x debt-to-cash flow by the end of 2026. The company’s recent quarterly results exceeded expectations, particularly in cash flow per share, driven by higher net price realizations and a robust hedging strategy. Furthermore, Peyto’s 2026 budget aligns with previous projections, maintaining a consistent capital expenditure plan that supports ongoing production growth and positions the company to benefit from potential natural gas market improvements in the coming years.
Bilkoski covers the Energy sector, focusing on stocks such as Viper Energy, ARC Resources, and Peyto Exploration & Dev. According to TipRanks, Bilkoski has an average return of 11.6% and a 54.17% success rate on recommended stocks.
In another report released yesterday, BMO Capital also maintained a Buy rating on the stock with a C$23.00 price target.