Aaron Bilkoski, an analyst from TD Cowen, maintained the Hold rating on Peyto Exploration & Dev. The associated price target is C$25.00.
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Aaron Bilkoski has given his Hold rating due to a combination of factors related to valuation and cash‑flow durability as hedges expire. He notes that even as Peyto’s attractive gas hedges roll off through 2027, the company should still be able to fund its steady capital program and higher dividend while keeping spending near 80% of forecast cash flow, resulting in a free‑cash‑flow yield that appears reasonable but not compelling at the current share price.
At the same time, he highlights a challenging macro backdrop, with an oversupplied gas market, ongoing production growth from peers, and delayed supply discipline that may push a more balanced market into 2027, limiting upside if gas prices stay near strip levels. In this context, Peyto’s stronger dividend and solid hedge book provide comfort and support the stock, but the already fair valuation and commodity‑price uncertainties lead him to a neutral, rather than more aggressive, recommendation.
Based on the recent corporate insider activity of 161 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 PEY in relation to earlier this year.