UPDATE: Stifel Upgrades Gear Energy Ltd. (GXE:CN) (GENGF) to Buy

(Updated - June 30, 2022 1:40 PM EDT)

Stifel analyst Robert J. Fitzmartyn upgraded Gear Energy Ltd. (GXE:CN) (OTC: GENGF) from Hold to Buy with a price target of Cdn$1.75 (from Cdn$1.85).

The analyst comments "With heavy oil differentials continuing to remain relatively narrow on a top line WTI quote that is strong, Gear represents an operationally levered equity option on further crude oil price recovery. It has initiated a shareholder return strategy focused around a variable dividend, with residual FCF allocated to share repurchases or other discretionary outlays while preserving the appearance of a flush treasury exiting 2022e. We expect GXE to be an active participant in the M&A/A&D markets. We are upgrading the stock to a BUY due to its favorable implied return to our target price."

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