BUZZ-Raymond James lifts Canadian Natural Resources' PT on higher production, improved unit costs
Raymond James has raised the price target for Canadian Natural Resources (CNQ.TO) from C$52 to C$54, indicating a potential upside of 25.2%. The firm noted that production met expectations, cash flow exceeded consensus, and operating costs were lower than anticipated. They consider CNQ a high-quality upstream player in Canada with a strong balance sheet and low free cash flow breakeven. Despite a 5.8% decline in stock price year-to-date, 14 out of 20 brokerages rate the stock as a 'buy' or higher, with a median price target of C$52.
Raymond James raises PT on oil and gas producer Canadian Natural Resources (CNQ.TO) to C$54 from C$52
New PT represents upside of 25.2% to stock’s last close
“Production was in-line while cash flow from operations beat consensus and operating expenses were also better than expected,” Raymond James says
Brokerage views CNQ as one of higher quality upsteam names in Canada, with increasingly attractive valuation to match
“We still view the balance sheet as rock solid given CNQ has one of the lowest sustaining free cash flow breakevens in Canada,” Raymond James says
Adds stock has lagged peer group YTD, creating compelling buying opportunity
14 out of 20 brokerages rate stock “buy” or higher, 6 “hold”; median PT is C$52 - data compiled by LSEG
As of last close, CNQ stock down 5.8% YTD
