The Globe and Mail reports in its Thursday edition that Raymond James has increased its price assumptions for crude oil for 2020 and 2021 to account for recent moves in forward futures prices, while also trimming its assumptions for natural gas pricing. The Globe's Darcy Keith and Roma Luciw write in the Eye On Equities column that as a result, Raymond James made a rating change to Kelt Exploration ($1.73) (all figures Canadian unless otherwise stated).
For 2020, James is now assuming West Texas Intermediate pricing of $38.56 (U.S.) per barrel of oil versus $33.25 (U.S.)/bbl prior. For 2021, it is now assuming $41.38 (U.S.)/bbl versus $35.57 (U.S.)/bbl prior. Longer term, it now assumes pricing of $50 (U.S.)/bbl versus $45.00 (U.S.)/bbl previously. Accordingly, James upgraded Kelt to "outperform" from "market perform." It raised its share target to $3 from $2.25. The Globe reported on May 11, 2019, that Kelt was on James's "Favourites list." It was then worth $8.33. The Globe reported on March 10, 2020, that James analysts had cut Kelt to "market perform" from "strong buy." The shares could then be had for $1.62. The Globe's Andrew Willis said Kelt insiders were busy buying shares, which were then worth $1.14.
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