TD Securities Upgrades Canadian Natural Resources Limited (CNQ) to Buy

TD Securities upgraded Canadian Natural Resources Limited (NYSE: CNQ) from Hold to Buy with a price target of C$53.

Analyst Menno Hulshof said, "Looking beyond a best-in-class decline profile, FCF yield, and the pullback in the broader energy market, we can point to: 1) several quarters of consistent performance at Horizon (after a rough start to production ramp-up in 2011, the market’s confidence in this project has been almost entirely restored, in our view); 2) a WCS heavy differential outlook that appears robust through September 2015 (strip showing a range of US$15/bbl–US$20/bbl); 3) the benefits of the full integration of Devon Canada (acquired); and 4) the potential for monetization of its fee title lands towards year-end (or at a minimum clarity, with respect to its intentions)."

"CNQ shares are now trading at a consensus forward EV/DACF multiple of 5.4x (Exhibit 1). Relative to the 2008–2014 historical average of 6.0x, we would argue that the current entry point is compelling," he added.

For an analyst ratings summary and ratings history on Canadian Natural Resources Limited click here. For more ratings news on Canadian Natural Resources Limited click here.

Shares of Canadian Natural Resources Limited closed at $38.95 yesterday.

You May Also Be Interested In

• Roth/MKM Upgrades Albertsons Companies Inc. (ACI) to Buy, 'Fundamental Floor and Improved Deal Likelihood'
• Topsports Intl Holdings (6110:HK) PT Lowered to HK$5.50 at HSBC
• Morgan Stanley Double Downgrades AU Optronics (2409:TT) (AUO) to Underweight