In a report released on March 25, Tariq Saad from BMO Capital maintained a Buy rating on Greenfire Resources (GFR – Research Report), with a price target of C$10.00.
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Tariq Saad has given his Buy rating due to a combination of factors including Greenfire Resources’ strategic shift under new management. The previous focus on refill drilling provided short-term gains but compromised long-term potential by causing higher decline rates and cannibalizing existing production. The new management is now emphasizing the development of new well pairs, which is expected to enhance the company’s production profile and sustainability over time.
Additionally, Greenfire Resources has improved its access to capital, raising its annual expenditure limit from $100 million to $150 million. This financial flexibility is anticipated to support the company’s long-term growth strategy, despite potential short-term volatility. Tariq Saad believes that these strategic changes will lead to a more robust and sustainable business model, ultimately driving better long-term value for shareholders.
GFR’s price has also changed moderately for the past six months – from $7.590 to $5.530, which is a -27.14% drop .