CPG - Crescent Point Energy raised at Raymond James touting Duvernay holdings

2023-03-22 11:36:05 ET

Crescent Point Energy ( NYSE: CPG ) +6.1% in Wednesday's trading as Raymond James upgraded the stock to Outperform from Market Perform with a C$12 price target.

"When Crescent Point bought into the Duvernay in 2021, the play had the potential to change the profitability of the company, yet with a mixed history of corporate challenges with investors, it would require meaningful evidence that changes were real... after two years, with a number of revised completion advancements and multiple well-pads later, it feels as if we're at that pivotal moment," Ray Jay's Jeremy McCrea wrote.

The analyst sees "a gap today between investor perception and where the Duvernay has progressed to. With size and scale ($8B-plus in blue sky undrilled locations in the Duvernay alone), and the company trading essentially at its PDP reserve value, there seems to be a mismatch."

Crescent Point Energy's ( CPG ) "share buybacks look set to run rampant and thus remove upwards of 40%-plus of their outstanding shares," DT Analysis writes in an analysis posted recently on Seeking Alpha .

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