Obsidian Energy initiated with an Outperform at RBC Capital

RBC Capital analyst Luke Davis initiated coverage of Obsidian Energy with an Outperform rating and C$13 price target. The analyst says Obsidian is poised to narrow the stock’s current valuation discount, driven by a strategic shift toward Clearwater delineation across its Peace River portfolio. The company’s legacy assets provide a stable cash flow base for reinvestment in potentially high-impact targets to which no market value is currently ascribed, the analyst tells investors in a research note.