BMO Capital Markets on Tuesday reiterated its outperform rating on the shares of Surge Energy (SGY.TO) while raising its price target to C$10.00 from an undisclosed prior level following second-quarter results from the Western Canadian oil and gas producer.

"Top-performing companies often share key traits: improved asset performance and favorable valuations. Surge exemplifies this, with its Sparky and Frobisher plays yielding some of industry's best wells, which also should be one of the key takeaways leading to the strong Q2 results. With production guidance up, capex & opex down, and well results coming in 25% above type curve, the momentum looks to continue. Overall, Surge's current valuation, relative to its inventory and 'rate of change' should eventually catch the attention of institutional investors. We raise Target Price to $10," analyst Jeremy McCrea 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)