The Globe and Mail reports in its Wednesday, July 19, edition that RBC Capital Markets analyst Luke Davis is keeping his "sector perform" call on PrairieSky Royalty intact. The Globe's David Leeder writes in the Eye On Equities column that Mr. Davis raised his share target by a loonie to $26. Analysts on average target the shares at $25.72.
Mr. Davis says in a note: "PrairieSky's quarter was negatively impacted by Alberta wildfires and prior period adjustments, though largely weighted to natural gas. The liquids business continues to exhibit strength with new leasing and spud activity predominantly oil weighted. Our 'sector perform' recommendation remains unchanged with our price target increased to $26/share given cash flow is primarily driven by liquids with PrairieSky poised to benefit from increasing heavy oil drilling activity." The Globe reported on Jan. 26 and March 30 that Canaccord Genuity rated PrairieSky "hold." It was then worth $22.55 and $21.13. The Globe reported on April 19 that iA Capital analyst Matthew Weekes had reaffirmed his "buy" recommendation for PrairieSky. The shares were then going for $21.04.
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