ATB Capital has revised its price target for Strathcona Resources from C$42.00 to C$32.00, as reported on Tuesday. This adjustment reflects a broader reassessment among financial institutions regarding the value of the company’s shares, which are traded on the Toronto Stock Exchange under the symbol TSE:SCR.
Several other analysts have also updated their evaluations of Strathcona Resources. National Bankshares lowered its target from C$38.00 to C$36.00 while maintaining a “sector perform” rating. This change was communicated in a report released on October 22, 2023. Similarly, the Royal Bank of Canada raised its target from C$36.00 to C$40.00, also assigning a “sector perform” rating in a note dated October 16, 2023.
In addition, TD Securities adjusted its price objective from C$35.00 to C$36.00, with a “hold” rating noted in a report on November 7, 2023. Scotiabank increased its target from C$34.00 to C$40.00, giving Strathcona Resources an “outperform” rating in a note on October 14, 2023. Jefferies Financial Group also raised its price target from C$34.00 to C$38.00 on November 11, 2023.
Currently, market sentiment appears mixed. One analyst has classified the stock with a “Strong Buy” rating, another has assigned a “Buy” rating, while six analysts issued a “Hold” rating. According to data from MarketBeat, the consensus rating for Strathcona Resources stands at “Hold,” with a consensus price target of C$35.43.
Dividend Announcement and Company Profile
Strathcona Resources recently declared a quarterly dividend of $0.30 per share, which was paid on December 15, 2023. Shareholders on record as of that date benefited from this dividend, which translates to an annualized yield of 4.1%. The ex-dividend date was set for December 5, 2023. The company’s dividend payout ratio currently stands at 21.68%.
Strathcona Resources Ltd. is a Canada-based oil and gas producer focused on thermal oil, enhanced oil recovery, and liquids-rich natural gas. The company operates primarily in three segments: Lloydminster Heavy Oil, Cold Lake Thermal Oil, and Montney. The Lloydminster Heavy Oil segment features extensive oil-in-place reservoirs with significant enhanced oil recovery opportunities, located mainly in southwest Saskatchewan. The thermal properties in Saskatchewan utilize steam-assisted gravity drainage (SAGD) processes similar to those employed in its Cold Lake Thermal segment.
As market dynamics continue to evolve, analysts and investors will be closely monitoring Strathcona Resources and its performance in the coming months.
