The Globe and Mail reports in its Thursday edition that Raymond James analyst Jeremy McCrea has reiterated his "outperform" recommendation for Peyto Exploration & Development. The Globe's David Leeder writes in the Eye On Equities column that Mr. McCrea jacked his share target up by $1.50 to $15. Analysts on average target the shares at $16.42. The Globe says Mr. McCrea thinks Peyto Exploration's $636-million acquisition of Repsol Canada sets the stage for higher multiple-year profitability. The company recently did a $201-million equity raise to help finance the deal. Mr. McCrea says in a note: "As natural gas prices remain volatile, a pillar to Peyto's success has been margin improving strategies, either through better market diversification, improving well results, and operating within a region with dominant control over infrastructure and egress. Consequently, Peyto's acquisition of Repsol's Canadian assets for $636-million significantly aligns with this strategy, expanding the company's Deep Basin acreage, which closely overlaps with Peyto's existing land holdings. These Repsol assets, however, have essentially been untouched for the past several years, with only 14 wells put on production since 2018."
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