Analysts at Canaccord Genuity Group Reduce Price Target for Surge Energy to C$13.75
April 8, 2023
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Analysts at Canaccord Genuity Group have recently lowered their price target for Surge Energy ($TSX:SGY) to C$13.75. Surge Energy is an independent, publicly-traded oil and gas exploration and development company based in Calgary, Alberta. The company is focused on increasing production from its asset portfolio in the Western Canadian Sedimentary Basin. Surge Energy has a proven track record of asset optimization and efficient growth.
Investors should keep in mind that the share price could be further impacted by any changes to the macroeconomic environment, including fluctuations in the price of oil. The lowered price target also reflects the potential downside risk of Surge Energy’s operations.
Price History
On Friday, SURGE ENERGY opened at CA$8.9 and closed at CA$8.8, with a 0.6% decrease from its prior closing price of 8.8. The downward trend of the stock is clearly visible, and investors should keep a close eye on the stock’s performance in the coming days to determine whether or not this is a trend that is likely to continue. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Surge Energy. More…
| Total Revenues | Net Income | Net Margin |
| 734.47 | 231.72 | 37.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Surge Energy. More…
| Operations | Investing | Financing |
| 276.12 | -332.27 | 56.15 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Surge Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.55k | 711.75 | 8.69 |
Key Ratios Snapshot
Some of the financial key ratios for Surge Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.6% | 108.4% | 25.8% |
| FCF Margin | ROE | ROA |
| 14.5% | 16.1% | 7.6% |
Analysis
At GoodWhale, we conducted an analysis of SURGE ENERGY‘s wellbeing. According to our Star Chart, SURGE ENERGY is strong in growth, medium in asset, profitability and weak in dividend. We classify this company as ‘gorilla’, a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. This makes it an attractive investment opportunity for investors interested in long-term growth. In addition, SURGE ENERGY has an intermediate health score of 6/10 with regard to its cashflows and debt, suggesting that it is likely to sustain future operations in times of crisis. Consequently, investors looking for long-term stability may find this company to be an appropriate investment. More…
Peers
Surge Energy Inc is an oil and gas company based in Calgary, Alberta. The company is involved in the exploration, development, and production of oil and natural gas in the Western Canadian Sedimentary Basin. Surge Energy’s competitors include Journey Energy Inc, Nexera Energy Inc, and Tenaz Energy Corp.
– Journey Energy Inc ($TSX:JOY)
Journey Energy Inc. is a Canadian oil and gas exploration and production company with operations in the Western Canadian Sedimentary Basin. The company has a market capitalization of $355.97 million and a return on equity of 69.52%. Journey Energy is focused on the development of its Montney natural gas and light oil resources in the Peace River area of northeastern British Columbia. The company’s strategy is to grow its production and reserves through a combination of organic growth and strategic acquisitions.
– Nexera Energy Inc ($TSXV:NGY)
Nexera Energy Inc is a Canadian oil and gas company with a market cap of 1.87M as of 2022. The company has a Return on Equity of 6.8%. Nexera Energy is involved in the exploration, development, and production of oil and gas properties in Canada.
– Tenaz Energy Corp ($OTCPK:ATUUF)
Tenaz Energy Corp is a Canadian oil and gas company with a market capitalization of $34.34 million as of March 2022. The company has a return on equity of 11.34%. Tenaz Energy Corp is engaged in the exploration, development, and production of oil and natural gas in Canada. The company’s operations are focused in the province of Alberta.
Summary
Surge Energy has been the subject of an analyst report released by Canaccord Genuity Group. The report issued a price target of C$13.75 on the company’s stock, which is a decrease from the previous price target. Investors have been advised to remain cautious of Surge Energy as a potential investment, given the recent downward revision of price target.
However, the report has also noted that Surge Energy remains a well-positioned North American oil and gas company with a large multi-year inventory of well-located assets in Western Canada. Further analysis suggests that the company has a solid balance sheet and liquidity position, as well as a track record of strong production and cash flow growth. Ultimately, investors should consider all factors when making an investment decision in this sector.
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