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Research Alert: CFRA Keeps Hold Opinion On Shares Of Canadian Natural Resources

05/07/2021 10:27

02:25 PM EDT, 05/07/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target price of $36, raised $4, reflects a 5x multiple of price-to-projected '21 operating cash flow, slightly above peers. We lift our '21 EPS estimate by C$2.34 to C$3.83 and '22's by $2.33 to $4.24. CNQ posts Q1 EPS of C$1.03 vs. a loss per share of C$0.25, C$0.18 above the consensus view. Natural gas production was up 11% over the year-ago quarter and overall decline rates remain low. We think Canadian oil price differentials could narrow in 2H '21 as extended maintenance across the Canadian oil industry keeps incremental barrels on the sidelines to some degree. Combined with U.S. benchmark oil prices being persistently-strong (above US$60 per barrel), we think that CNQ's free cash flow generation should be strong in '21. The company boosted the dividend by 11%, to an annualized C$1.88, yielding 5.7%.