National Bank Financial initiates coverage on Strathcona Resources stock

Published 30/06/2025, 10:20
National Bank Financial initiates coverage on Strathcona Resources stock

Investing.com - National Bank Financial initiated coverage on Strathcona Resources Ltd (TSX:SCR) with an Outperform rating and a price target of C$42.00 on Monday.

The investment bank views Strathcona as providing investors with pure-play oil sands exposure to long-life development opportunities at a relative discount to the peer group, according to its research note.

National Bank Financial highlighted that the company offers public investors access to a long-term, private-style strategy where Strathcona leverages a value investing approach that embeds intrinsic value across the development of its portfolio.

The firm noted that Strathcona’s focus on corporate-level returns through strict capital allocation decisions across its organizational structure creates a culture of accountability and innovation.

National Bank Financial pointed to Strathcona’s growth potential, with line-of-sight towards 200,000 barrels per day of heavy oil production, up from 120,000 barrels per day currently, supported by ample liquidity, improving sustaining costs and expanding margins through asset optimization and cost management.

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