In a report released yesterday, Jeremy Mccrea from BMO Capital maintained a Buy rating on Parex Resources, with a price target of $20.00.
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Jeremy Mccrea has given his Buy rating due to a combination of factors including Parex Resources’ strategic move to acquire GeoPark, which signals potential growth opportunities. Despite the challenges faced by Canadian-listed E&Ps in Colombia, Parex’s bid reflects confidence in the operational momentum and future prospects of its assets, particularly the LLA-34 block and the polymer flooding pilot.
Moreover, the acquisition proposal, although initially rejected, demonstrates Parex’s commitment to expanding its footprint and enhancing its production capabilities. The metrics associated with the offer, such as the EV/PDP and future undrilled value, suggest a fair valuation and potential accretive benefits. Additionally, Parex’s focus on balancing growth with shareholder returns further supports the positive outlook for the company.
Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PARXF in relation to earlier this year.