Baytex Energy upgraded to Outperform from Market Perform at BMO Capital

BMO Capital analyst Mike Murphy upgraded Baytex Energy to Outperform from Market Perform with a price target of C$7.50, up from C$5.50. The analyst contends that given the strengthening crude prices and with post-acquisition deleveraging well underway, the company will generate upwards of C$1.4B of free cash flow next year, half of which will be returned to shareholders. The stock also trades at a “compelling” 2024 free cash flow yield of 31% relative to that of mid-cap peers at 15%, the firm tells investors in a research note.