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On Thursday, Canaccord Genuity analysts announced an upgrade in their rating of Pine Cliff Energy Ltd . (TSX:PNE:CN) (OTC: PIFYF) from Hold to Buy, maintaining a price target of Cdn$0.90. The analysts have acknowledged the company’s decision to reduce its dividend as a strategic move, particularly in light of the forward AECO pricing projections for the next year.
The analysts noted that by focusing on drilling later in the year, Pine Cliff Energy is poised to strengthen its position when the majority of its production increases are expected to be realized in 2026. They pointed out that AECO prices for 2026 are currently averaging $3.40/mcf, which is approximately 30% higher than the levels projected for 2025 at $2.62/mcf.
Canaccord Genuity’s decision to upgrade the rating to Buy reflects their analysis of the company’s potential in the context of these future pricing expectations. The analysts have reiterated their price target of $0.90, which corresponds to a 2025 estimated enterprise value to debt-adjusted cash flow (EV/DACF) multiple of 5.2 times.
Currently, Pine Cliff Energy’s shares are trading at an EV/DACF multiple of 4.2 times for 2025 estimates, which is significantly higher compared to the peer group average of 2.7 times. The analysts’ commentary underscores their belief that the company’s strategic choices, including the dividend cut, are well-aligned with the expected market conditions and will benefit Pine Cliff Energy in the forthcoming years.
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