BMO Capital Markets on Wednesday reiterated its outperform rating on the shares of Paramount Resources (POU.TO) while cutting its price target to C$25.00 from an undisclosed prior level after the Western Canadian oil and gas producer closed the C$3.3-billion sale of properties to Ovintiv (OVV.TO, OVV) and distributed a special dividend of $15.00 per share.
"We believe Paramount is a unique E&P business with a number of non-producing/hard-to-value assets that have generally been ignored by investors (especially its long-duration holdings in Cavalier, Sinclair and its Horn River/Liard Basin gas prospects). With the closing of its recently announced Montney disposition to Ovintiv, the company will now shift gears and primarily focus on the development of its Duvernay properties and Sinclair. With the company recently paying the special dividend of $15 we are lowering out Target Price to $25," analyst Jeremy McCrea noted.
(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: 17.98, Change: -0.15, Percent Change: -0.83
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