Stephens starts Granite Ridge at Overweight on double-digit output growth

Stephens analyst Mike Scialia initiated coverage of Granite Ridge Resources with an Overweight rating and $8.00 price target. The stock’s valuation gap relative to the firm’s mid-cap oil peer group is expected to narrow as the market comes to appreciate the advantages of the company’s non-operated business model, the analyst tells investors in a research note. An under-levered balance sheet with no bond maturities positions the company to deliver differentiated double-digit production growth, Stephens added.