Today, an analyst has provided a rating update for the Materials sector company, Journey Energy (TSX: JOY). The company received a Buy rating from Canaccord Genuity’s analyst Sam Roach, with a C$2.25 price target.
Roach said:
“We are upgrading Journey to SPECULATIVE BUY (from Hold) and increasing our price target to C$2.25 (from C$1.80) following the announcement of a Duvernay JV. Journey announced a joint venture agreement to develop its extensive Duvernay acreage, and added an additional 40 sections of land to the existing 100. We believe this is a significant positive development for JOY, as the shares had been reflecting zero value for the company’s Duvernay acreage, in our view. Now, we believe investors could start to attribute value to this play, allowing JOY shares to trade at a smaller discount to PDP NAV (currently 0.5x PDP NAV).”
Roach has an average return of 2.0% when recommending Journey Energy.
According to TipRanks.com, Roach is ranked #840 out of 4877 analysts.
Journey Energy has an analyst consensus of Hold, with a price target consensus of C$2.35.
The company has a one-year high of C$2.30 and a one-year low of C$1.31. Currently, Journey Energy has an average volume of 15.78K.
Journey Energy, Inc. is a Canadian exploration and production company focused on oil-weighted operations in western Canada. Its activities include drilling on its existing core lands, implementing water flood projects and executing on accretive acquisitions. The company was founded on June 26, 2007 and is headquartered in Alberta, Canada.
The company’s shares closed on Wednesday at C$1.72.
