Strathcona Resources Kept at Market Perform at BMO Following End to MEG Energy Bid; Price Target at C$40.00

MT Newswires Live
10/15

BMO Capital Markets on Wednesday resumed coverage of Strathcona Resources (SCR.TO) with a market-perform rating and a C$40.00 price target after the Western Canadian oil and gas producer dropped its hostile offer for MEG Energy (MEG.TO).

"We resume coverage of SCR at Market Perform and with a $40/share target price following its terminated bid for MEG Energy. SCR will now refocus on its organic growth plans, aiming to achieve one of the strongest rates of growth among its peers (PPS 26-29 CAGR of ~9%). The company is also proceeding with another set of pass-throughs to WEF's LPs, which should improve the float and overall trading liquidity. SCR currently trades at a 2026/2027 EV/EBITDA multiple of 7.2x/5.5x (current strip) versus its large-cap peer average of 6.2x/5.7x.," analyst Randy Ollenberger wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 36.13, Change: -0.66, Percent Change: -1.79

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