- BMO Capital analyst Ray Kwan raised the price target for Baytex Energy Corp (TSX:BTE) (OTC:BTEGF) to C$8.50 from C$8 while maintaining the Market Perform rating on the shares.
- The analyst mentions that while the quarter was in line, the Clearwater at Peavine continues to deliver exceptional results, with recent wells having initial rates as high as 1,200bbl/d.
- Kwan adds that inflationary pressures and operational success have contributed to an increased 2022 budget and guidance.
- The analyst believes Baytex provides substantial torque to rising oil prices and flexibility to the Clearwater play at Peavine. Despite excellent deleveraging/free cash flow activities in 2022, leverage remains greater than its rivals.
- Price Action: BTE shares are trading lower by 8.16% at C$6.53 on TSX, and BTEGF is lower by 8.35% at $5.09 on the last check Friday.
