BMO Capital Reiterates Outperform Rating on Obsidian Energy Ltd. (OBE:CN)

2024.05.29 06:04

BMO Capital analysts reiterated an Outperform rating and Cdn$17.00 price target on Obsidian Energy Ltd. (CN) (OBE).

The analysts comment “Obsidian has undergone significant change over the past few years—from restarting its Bluesky/Clearwater operations to shifting to one of the higher-growth names in the sector. The Clearwater acquisition for $76mm adds to this growth profile and gets it closer to joining the TSX Composite and becoming more meaningful with institutional investors. With many of Woodcote’s wells showing 2x payout within a few years, this new inventory should see plenty of reallocated capital from OBE’s Cardium, and overall, enhance OBE’s profitability and upside.”

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