The Globe and Mail reports in its Thursday, Jan. 19, edition that Barclays analyst Anthony Linton began coverage of the Canadian oil and gas sector with a "positive view." The Globe's David Leeder writes that
Mr. Linton gave Parex Resources an "overweight" rating with a $29 share target. Analysts on average target the shares at $34.20. Mr. Linton says in a note: "The sector faced a series of headwinds from 2016 to 2020, including commodity price volatility, egress constraints, and demand challenges related to COVID-19. However, companies within our coverage were able to capitalize on opportunities through the downturn, reflecting the quality of their operations, and translating into asset growth and improved leverage profiles. We believe these changes should leave them well positioned through 2023 despite recent commodity price volatility. In that regard, our positive view reflects the quality of the operators and their commitment to disciplined production growth with well-defined return of capital initiatives, against a backdrop of improving commodity prices through the year, thus supporting solid leverage profiles. ... We enter the year with cautious optimism on midstream names within our coverage."
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