BMO Capital analyst Jeremy Mccrea has maintained their bullish stance on OBE stock, giving a Buy rating on February 20.
Jeremy Mccrea has given his Buy rating due to a combination of factors including Obsidian Energy’s impressive production growth and strategic asset management. The company has shown a notable 16% year-over-year increase in production, which is a strong indicator of its operational efficiency and potential for future growth. Additionally, the recent disposal of Pembina Cardium assets and the focus on Bluesky/Clearwater operations have positioned the company well for continued success.
Furthermore, Obsidian’s financial health has improved significantly, with a robust cash flow and a commitment to shareholder returns through its buyback program. The company’s guidance for the first half of 2025 aligns with market expectations, and the recent strength in crude oil prices is expected to support further growth in heavy oil production. These factors collectively contribute to the positive outlook and the Buy rating assigned by Jeremy Mccrea.
In another report released on February 20, Raymond James also reiterated a Buy rating on the stock with a C$14.00 price target.