Research Alert: CFRA Keeps Hold Rating On Shares Of Paramount Resources Ltd.
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We maintain our Hold rating and increase our target price to CAD34 from CAD31. This was based on an expanded multiple (7.2x vs. 6.8x) and better expected EBITDA margins in 2027. Multiple production guidance increases over the last two quarters suggest Paramount Resources (POU) will continue to execute through its significant investment cycle during 2027. Production guidance for 2026 was raised to 48,000-52,000 boe/d (50% liquids) from the prior 46,000-51,000 boe/d range, due to well performance and an earlier Alhambra phase 2 start-up, while the company reduced its 2026 capital expenditure guidance by CAD50M to CAD1,000M-CAD1,100M. We think this level of execution justifies our premium multiple of 7.2x vs. the long-term average of 4.7x. The recent ARX deal also adds a takeout premium to Western Canadian gas players, which POU may benefit from as the energy crisis drags on. We raise our 2026 EPS forecast to CAD1.10 from CAD0.85 and lower our 2027 EPS forecast to CAD1.09 from CAD1.22.
