Obsidian Energy initiated with a Strong Buy at Raymond James

Raymond James analyst Luke Davis initiated coverage of Obsidian Energy (OBE) with a Strong Buy rating and C$14 price target The firm thinks positioning of the small-cap oil and gas producer group looks compelling with many of the equities trading at material discounts to both larger-cap peers and underlying resource value. While many of the business models have converged, differentiating by asset quality and duration, management track record and valuation “is a good starting point when coupled with a look at potential needle moving catalysts,” the analyst tells investors in a research note.