In a report released yesterday, Jeremy Mccrea from BMO Capital maintained a Buy rating on Surge Energy (ZPTAF – Research Report), with a price target of C$9.00.
Jeremy Mccrea has given his Buy rating due to a combination of factors that highlight Surge Energy’s potential for significant growth. The company has demonstrated a strong performance in its recent well operations, with impressive production rates from both the Hope Valley Sparky and Frobisher wells. This operational success, coupled with a favorable reserve report, suggests that Surge Energy is well-positioned to deliver substantial returns to investors.
Additionally, Surge Energy’s valuation appears attractive, as it is trading below its updated PDP NAV per share. The company’s ability to add value through efficient capital deployment, as evidenced by the positive change in PDP reserve value relative to capital spending, further supports the Buy rating. With maintained guidance for 2025 and a strategic focus on core assets, Jeremy Mccrea sees Surge Energy as a compelling investment opportunity, particularly if oil prices improve.
According to TipRanks, Mccrea is a 5-star analyst with an average return of 15.1% and a 48.24% success rate. Mccrea covers the Energy sector, focusing on stocks such as Obsidian Energy, Tamarack Valley Energy, and Baytex Energy.