Athabasca Oil (OTCPK:ATHOF) -3.6% in Tuesday’s buying and selling as RBC Capital downgrades to Sector Carry out from Outperform with a C$6 worth goal, following the inventory’s robust relative YTD efficiency and premium valuation.
RBC’s Luke Davis says Athabasca’s (OTCPK:ATHOF) operational execution stays robust and its administration continues to ship on key priorities together with shareholder returns, however whereas the analyst sees longer-term choices for the corporate’s broader oil sands portfolio, financing and cycle time stay key hurdles.
Athabasca (OTCPK:ATHOF) exited This fall 2023 with $430M in liquidity and $345M in money, and Davis expects the corporate will proceed to construct by way of the remainder of 2024, exiting with $445M in liquidity and $335M in money – internet of inventory buybacks – offering flexibility to additional improve shareholder returns and/or speed up capital initiatives into subsequent 12 months.
Davis stays upbeat on Athabasca (OTCPK:ATHOF), and says the inventory trades at a cloth premium to oil-weighted friends, which he believes is “justified by robust operational execution, free money technology, publicity to WCS heavy oil, and administration’s continued deal with shareholder returns.”
Athabasca Oil (OTCPK:ATHOF) -3.6% in Tuesday’s buying and selling as RBC Capital downgrades to Sector Carry out from Outperform with a C$6 worth goal, following the inventory’s robust relative YTD efficiency and premium valuation.
RBC’s Luke Davis says Athabasca’s (OTCPK:ATHOF) operational execution stays robust and its administration continues to ship on key priorities together with shareholder returns, however whereas the analyst sees longer-term choices for the corporate’s broader oil sands portfolio, financing and cycle time stay key hurdles.
Athabasca (OTCPK:ATHOF) exited This fall 2023 with $430M in liquidity and $345M in money, and Davis expects the corporate will proceed to construct by way of the remainder of 2024, exiting with $445M in liquidity and $335M in money – internet of inventory buybacks – offering flexibility to additional improve shareholder returns and/or speed up capital initiatives into subsequent 12 months.
Davis stays upbeat on Athabasca (OTCPK:ATHOF), and says the inventory trades at a cloth premium to oil-weighted friends, which he believes is “justified by robust operational execution, free money technology, publicity to WCS heavy oil, and administration’s continued deal with shareholder returns.”