Kelt Exploration initiated with an Outperform at Raymond James

Raymond James initiated coverage of Kelt Exploration (KELTF) with an Outperform rating and C$9.50 price target as the firm started coverage of eight natural gas-weighted producers operating in Western Canada. The firm continues to see “significant latent value across the space,” though it sees Canada remaining at a structural disadvantage given dislocation from global markets. The firm thinks “consolidation is logical, and likely necessary in several case,” the analyst added.