CIBC Capital Markets on Tuesday maintained its outperformer rating on the shares of Paramount Resources (POU.TO) while raising its price target to C$34.50 from C$31.00 after the oil and gas producer reported first-quarter results.
With improved well results at Willesden Green and the earlier-than-anticipated start-up of phase two at the Alhambra gas plant, capital efficiencies are improving for Paramount, CIBC said.
The company's increased production and reduced capital spending guidance drives a higher cash flow forecast in CIBC's model for 2026 and 2027.
As a result, CIBC raised the company's price target, based on a 2027 target EV/DACF multiple of 6.0x.
"We expect the commissioning of Phase 2 at the Alhambra gas plant, along with corresponding well results, to serve as catalysts heading into H2/2026," CIBC said.
Price: $30.31, Change: $-0.58, Percent Change: -1.88%