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Whitecap Resources: Strategic Merger, Asset Sales, and Growth Targets Justify Buy Rating

Anthony Linton, an analyst from Jefferies, maintained the Buy rating on Whitecap Resources (SPGYFResearch Report). The associated price target remains the same with C$12.00.

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Anthony Linton has given his Buy rating due to a combination of factors including Whitecap Resources’ successful merger with VRN and its optimistic 2025 guidance. The company anticipates a production range of 295-300 mboe/d with a capital expenditure budget of $2.0 billion, which reflects a strategic focus on enhancing production capabilities.
Additionally, Whitecap Resources has announced $270 million in non-core asset sales, expected to close by the end of the second quarter of 2025, which will further strengthen its balance sheet. The company is also targeting a 3-5% growth in production per share, indicating a commitment to long-term growth and financial stability. These strategic moves and financial targets contribute to the positive outlook and justify the Buy rating.

In another report released today, Scotiabank also upgraded the stock to a Buy with a C$12.00 price target.

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