Research Alert: CFRA Upgrades View To Buy From Hold On Shares Of Whitecap Resources Inc.
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We raise our target by CAD3 to CAD18, using 6.0x our 2027 EBITDA. We increased the multiple from 4.5x due to WCP's newfound scale, netback improvements, increased demand for Montney producers, and general sentiment toward producers in this geopolitical climate. We also lift our 2026 EPS to CAD1.24 from CAD1.00 and cut 2027 to CAD1.00 from CAD1.12. While the Iranian war and crude pricing are driving headlines, WCP is executing flawlessly operationally. The obvious benefits of crude pricing remaining elevated will continue to benefit WCP through funds flow generation and increased de-levering and buybacks. Management raised full-year 2026 production guidance by 7,500 boe/d to 378,000-382,000 boe/d while maintaining the capital budget of CAD2.0B-CAD2.1B, which could create a +CAD2.0B FCF windfall in FY 26. Shares are at all time highs. However, we think valuation remains fair and believe WCP to be the best operating mid-cap in our coverage with the space seeing increased exposure post-ARX.
