In a report released yesterday, Jeremy Mccrea from BMO Capital maintained a Buy rating on PrairieSky Royalty, with a price target of C$32.00.
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Jeremy Mccrea has given his Buy rating due to a combination of factors that highlight PrairieSky Royalty’s strong performance and strategic positioning. The company has demonstrated impressive growth with an 8% increase in oil production year-over-year, driven by significant activity in key areas such as the Mannville, Clearwater, and Duvernay plays. This growth is supported by PrairieSky’s unique royalty assets, which contribute to its high profitability and minimal debt, making it a robust business platform in the basin.
Moreover, PrairieSky’s financial results have exceeded expectations, with reported production and cash flow surpassing both BMO’s estimates and consensus figures. The company has also shown a commitment to returning capital to shareholders through share repurchases and dividend payouts, while strategically acquiring additional royalty interests. Additionally, the increased credit limit enhances the company’s financial flexibility, positioning it well for future growth opportunities.
In another report released on June 30, RBC Capital also maintained a Buy rating on the stock with a C$35.00 price target.
Based on the recent corporate insider activity of 23 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 PREKF in relation to earlier this year.