The Globe and Mail reports in its Thursday edition that in a research report released Wednesday titled A Sweet Spot For Profitability, CIBC World Markets analyst Jamie Kubik thinks the impact of rising prices is "outpacing" inflation for Canadian energy companies. The Globe's David Leeder writes that Mr. Kubik says in a note: "While we believe we are in a higher-for-longer price cycle, producers have not meaningfully adjusted capital spending plans to drive commensurate production growth, which is unique versus prior up-cycles. Although we have seen operators continue to mark spending programs higher due to the impact of inflation and supply chain tightness, we maintain our view that price realizations should continue to outpace cost inflation for the space." Accordingly, Mr. Kubik upgraded PrairieSky Royalty to "outperformer" from "neutral." Mr. Kubik boosted his unit target to $26 from $24. Analysts on average the units at $22.77. The Globe reported on Jan. 10, 2022, that ATB Capital Markets analyst Patrick O'Rourke began coverage on PrairieSky with a "sector perform" rating. The shares were then worth $14.01. The Globe reported on March 24 that RBC saw PrairieSky making gains. It was then worth $17.47.
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