Surge Energy initiated with an Outperform at Raymond James

Raymond James initiated coverage of Surge Energy (ZPTAF) with an Outperform rating and C$9 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.