Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
On Friday, RBC Capital Markets updated their perspective on Cardinal Energy Ltd (CJ:CN) (OTC: CRLFF), with analyst Rob Mann taking over coverage. The firm set an Outperform rating on the company’s stock, lifting the price target to C$7.50 from the previous C$7.00. The stock has shown strong momentum recently, posting a 17.46% return over the past week. According to InvestingPro data, Cardinal Energy trades at a P/E ratio of 8.99, with a market capitalization of approximately $702 million. Mann’s assessment highlights the significance of the year 2025 for Cardinal Energy as it embarks on a strategic shift towards thermal development with the upcoming completion of its first steam-assisted gravity drainage (SAGD) project, Reford.
The Reford project, which has a projected output of 6,000 barrels per day, is expected to act as a critical catalyst for Cardinal. The analyst anticipates that this development will substantially boost the company’s free cash flow and have several positive secondary effects. InvestingPro analysis shows Cardinal maintains a "GREAT" financial health score of 3.01, with current EBITDA of $180.5 million, suggesting strong operational performance. With this transition, Cardinal is poised to enhance its financial performance, which has been a key factor in RBC Capital’s decision to upgrade the stock.
Mann provided further insights into the upgrade, stating, "We are transferring primary coverage of Cardinal to RBC Analyst Rob Mann and upgrading the company to Outperform, raising our one-year price target by $0.50 (7%) to $7.50 per share, rolling our valuation year ahead to 2026E." This new target reflects a 7% increase from the previous target and signals confidence in Cardinal’s future.
The SAGD project is part of Cardinal’s broader strategy to pivot towards more sustainable and efficient methods of oil extraction. The project is not only anticipated to enhance production but also to improve the company’s environmental footprint, which is becoming increasingly important in the energy sector. Notably, the company maintains an attractive dividend yield of 11.76%, demonstrating its commitment to shareholder returns while investing in growth initiatives.
Cardinal Energy’s stock price adjustment by RBC Capital Markets indicates a positive outlook for the company as it moves forward with its strategic initiatives. The firm’s analysis suggests that investors may see an increase in value as Cardinal progresses with its thermal development project and continues to focus on generating greater free cash flow. With earnings scheduled for May 8, 2025, investors can access more detailed analysis and 8 additional key insights through InvestingPro’s comprehensive financial toolkit.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.