Baytex Energy initiated with a Market Perform at Raymond James

Raymond James initiated coverage of Baytex Energy (BTE) with a Market Perform rating and C$5.50 price target The firm thinks positioning of the small-cap oil and gas producer group looks compelling with many of the equities trading at material discounts to both larger-cap peers and underlying resource value. While many of the business models have converged, differentiating by asset quality and duration, management track record and valuation “is a good starting point when coupled with a look at potential needle moving catalysts,” the analyst tells investors in a research note.