BMO Capital analyst Jeremy McCrea reinstated coverage of Crew Energy with a Market Perform rating and $5.25 price target. The analyst noted that investors lump Crew Energy in with other operators whose valuations are reflective of near-term free cash flow sustainability/dividend requirements. The analyst feels the valuation premise for Crew should instead reflect long-term commodity upside, as Crew is “one of the last remaining gas- weighted mid-cap names in B.C., with an immense, undrilled Montney fairway.” However, investor appetite for gas-weighted names is “incredibly low” and either higher gas prices or a return to higher growth could be needed to accelerate investor interest.
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