Canadian Natural upgraded to Outperform at Raymond James after selloff

Raymond James analyst Michael Barth upgraded Canadian Natural (CNQ) to Outperform from Market Perform with a price target of C$67, up from C$65. Since the firm previously downgraded shares in late March, the stock has sold off about 13% and underperformed the peer group by about 10%, notes the analyst, who adds that the stock is now nearly back to the levels seen before the Iran conflict started. Over the same period, synthetic crude oil premiums have started to emerge, which is largely a Canadian Natural-specific tailwind that causes the firm to raise its FY26 and FY27 AFFO estimates, says the analyst, who sees better visibility to the company achieving their long-term net debt target by the end of the year while “simultaneously materially increasing shareholder returns.”