-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We maintain our 2-STARS (Sell) recommendation and decreased our 12-month target price from USD25 to USD22. Our target price reflects a 5.5x EBITDA multiple of our 2027 EBITDA estimate. We moderated our top-line growth expectations amid crude pricing swings and WTI/WCS differential responses. Therefore, we lower our 2026 EPS estimate by CAD0.51 to CAD3.38 and our 2027 EPS estimate by CAD0.43 to CAD2.37. Q1 saw net debt drop to CAD8.06B from CAD8.29B sequentially. This is the right direction but with less conviction than we anticipated, as a CAD6B net debt load would increase excess free fund flows that could be returned to shareholders. We continue to believe the downside risk in crude pricing is too elevated and predominantly crude producing names are experiencing a short-term cash flow rush that will moderate.