Research Alert: Tou Maintained Buy As Lower Gas Pricing Dents Cash Flow: Tp Cad74
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We maintain our Buy (4-STARS) rating and decrease our target price to CAD74. This is based on an EV/EBITDA multiple of 6.8x our 2027 EBITDA projection. We reduced the EBITDA multiple from 7.2x to 6.8x to bring it closer in line with the long-term bands. While still a premium multiple, we believe the Iranian war, ARC deal, and global energy sentiment will elevate multiples for a time. Q1 production was 666,089 boe/d, within guidance. Cash flow declined 10% to CAD862.2M, reflecting lower gas pricing realizations, which were down 17% Y/Y. Overall, guidance was maintained and infrastructure projects remain on schedule. No special dividend or base dividend increase was announced.
