Topaz Energy: Canaccord Boosts Price Target To $19.00

Last week, Topaz Energy Corp. (TSX: TPZ) had a series of positive developments. First, the company closed a $201.3 million bought deal financing. Then, the company rejigged their guidance for the fiscal year, indicating processing revenue is expected to climb to $57.2 million, while EBITDA is expected to hit between $158 – $160 million for the year.

This news prompted many analysts to increase their 12-month price target bringing the average up to $18.73, up from $18.07 from before the news release. Three analysts have strong buy ratings and 12 analysts have buy ratings. The street high goes to ATB Capital Markets with a $21 price target and the lowest sits at $16 from Veritas Investment.

In Canaccord’s note they slightly increase their 12-month price target to C$19.00, up from C$18.50, and reiterate their buy rating on the company. Their analyst Anthony Petrucci says that these acquisitions “bolster go forward growth outlook.” He adds, “We believe Topaz is a compelling way to gain exposure to natural gas pricing, while its infrastructure assets provide enhanced stability relative to other royalty options.”

Topaz has recently announced two acquisitions which include 500,000 gross acres in NEBC Montney and roughly 200,000 gross acres in Clearwater which both include significant upside and are immediately accretive Petrucci says. These two acquisitions cost the company $347 million and were funded through a recently bought deal, existing cash on hand, and some debt.

Below you can see the 2022 updated cashflow calculations Canaccord provided.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

First Majestic Posts Record Cash Flows In Q1 As Production Costs Fall

Brazil Potash Secures Funding In Support Of US$2.5 Billion Autozales Project

Related News

PENN: Consensus Points To Q1 Revenues Of $1.14 Billion

Penn National Gaming (NASDAQ: PENN) will be reporting its first quarter financial results on May...

Wednesday, May 5, 2021, 05:59:00 PM

Cannabis Earnings: Cantor Fitzgerald Adjusts Ratings Ahead Of Earnings

Last week, Pablo Zuanic from Cantor Fitzgerald released his second-quarter estimates and updated his 12-month...

Wednesday, August 11, 2021, 09:56:00 AM

Village Farms: Raymond James Remains Bullish With Dutch Venture Announcement

Yesterday, Village Farms (TSX: VFF) (NASDAQ: VFF) indicated that they would become a 16% shareholder...

Thursday, July 9, 2020, 10:15:58 AM

Lyft Sees Several Analysts Raise Targets Following Q1 Earnings

Lyft Inc (NASDAQ: LYFT) opened up 2.5% higher Tuesday morning following the release of its...

Sunday, May 9, 2021, 12:24:00 PM

Verano Holdings: Analyst Ratings Nearly Unchanged After Q2 Earnings

On August 10, Verano Holdings (CSE: VRNO) reported their second quarter financial results. The company...

Sunday, August 15, 2021, 02:04:00 PM