Tariq Saad, an analyst from BMO Capital, maintained the Buy rating on Advantage Energy (AAVVF – Research Report). The associated price target remains the same with C$13.00.
Tariq Saad’s rating is based on Advantage Energy’s solid financial performance and promising operational results. The company’s Q4/24 cash flow was in line with expectations, and its production exceeded consensus estimates. The successful results from the Charlie Lake wells, which outperformed those drilled by the previous operator, highlight the potential for increased production efficiency and output.
Furthermore, Advantage Energy’s strategic acquisition of Charlie Lake has led to a projected 13% increase in cash flow per share for 2025 compared to its standalone operations. Despite the temporary increase in net debt due to the acquisition, the company is on track to meet its debt reduction targets by the end of 2025. The valuation metrics, including a competitive EV/EBITDA multiple and FCF yield, suggest that the stock is attractively priced relative to its peers, offering significant upside potential, especially with a favorable NYMEX-AECO spread.
According to TipRanks, Saad is an analyst with an average return of -13.2% and a 0.00% success rate.