Analyst Tariq Saad of BMO Capital maintained a Buy rating on Athabasca Oil, with a price target of C$8.00.
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Tariq Saad has given his Buy rating due to a combination of factors including Athabasca Oil’s robust growth potential and strong financial performance. The company’s recent quarterly results were in line with expectations, showing steady cash flow, production, and capital spending. Despite the stock appearing expensive in the short term, Athabasca Oil offers a compelling growth profile compared to its peers.
Tariq Saad also highlights the company’s future prospects, with expectations of a significant increase in free cash flow yield by 2028 as capital spending decreases and production capacity expands. The solid performance of the Leismer and Hangingstone projects, along with the anticipated growth in production volumes, supports a positive outlook. Additionally, Athabasca’s strong balance sheet, long reserve life, and commitment to shareholder returns further justify the Buy rating.
In another report released on October 23, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a C$7.50 price target.
ATHOF’s price has also changed dramatically for the past six months – from $3.380 to $4.940, which is a 46.15% increase.