BMO Capital analyst Tariq Saad maintained a Buy rating on Athabasca Oil (ATHOF – Research Report) today and set a price target of C$6.00.
Tariq Saad has given his Buy rating due to a combination of factors that suggest a positive outlook for Athabasca Oil. Despite recent volatility in the market, the company’s Q4/24 results were in line with expectations, and there is anticipated growth in the second half of 2025 driven by ongoing activities at Leismer and DEC. The company is also expected to achieve a free cash flow yield of approximately 10% in 2025, supported by its strong liquidity position and substantial cash reserves.
Furthermore, Athabasca Oil’s robust reserve base, with significant 1P and 2P reserves, provides a long reserve life, indicating stability and potential for future growth. Although the stock has faced challenges due to tariff concerns and OPEC+ production changes, the company’s solid balance sheet and commitment to enhancing shareholder returns make it an attractive investment. These factors collectively underpin Tariq Saad’s Buy rating for Athabasca Oil.
According to TipRanks, Saad is an analyst with an average return of -13.2% and a 0.00% success rate.
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