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On Wednesday, RBC Capital Markets updated their outlook on Trican Well Service (TCW:CN) (OTC:TOLWF), increasing the price target to Cdn$6.00, up from the previous Cdn$5.50, while keeping an Outperform rating on the stock. The revision follows Trican’s first quarter earnings for 2025, which revealed an EBITDA modestly surpassing RBC Capital’s expectations.
Trican, a company focused solely on the Canadian market within RBC Capital’s coverage, is seen as offering investors a unique opportunity. The firm’s analysts believe that Trican is well-positioned to benefit from the differing exploration and production (E&P) activity trends between the United States and Canada. The analysts underscored Trican’s leading free cash flow (FCF) and shareholder return metrics as key factors supporting their positive outlook.
The updated price target reflects a slight adjustment in RBC Capital’s forward EBITDA estimates for Trican. The analysts’ maintained Outperform rating indicates a confidence in the company’s performance over the next 12 months. The forecast is rooted in Trican’s financial results and its strategic position as the only Canadian-focused entity in the analysts’ coverage group.
In their commentary, RBC Capital analysts highlighted Trican’s financial health, noting, "Trican’s 1Q25 EBITDA was slightly ahead of our estimates. As the only Canadian-focused company in our coverage group, we think Trican offers exposure to diverging E&P activity trends across the US/Canada border. We remain bullish on TCW over the next 12-months given its peer-leading FCF and shareholder return metrics."
The endorsement from RBC Capital comes as a strong signal to the market regarding Trican’s potential and stability. With the revised price target of Cdn$6.00, investors may look to Trican’s recent performance and strategic market positioning as indicators of its ability to continue delivering value.
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