Scotiabank reiterates sector outperform rating on Spartan Delta stock

Published 12/06/2025, 13:26
Scotiabank reiterates sector outperform rating on Spartan Delta stock

Scotiabank (TSX:BNS) maintained its Sector Outperform rating and Cdn$7.00 price target on Spartan Delta Corp (TSX:SDE) (OTC:DALXF) following a visit to the company’s operations in the Willesden Green Duvernay play in Central Alberta.

The research firm expressed strong confidence in Spartan Delta’s field operations, noting impressive organization and order despite the early stage of its Duvernay development. Scotiabank highlighted the intellectual effort the company’s leadership has invested in developing the play and the commitment of field personnel.

Spartan Delta currently trades at less than 1.5 times its PDP NAV (Proved Developed Producing Net Asset Value), which Scotiabank views as offering significant upside potential with minimal cost for the Duvernay development option.

The firm identified Spartan Delta as a top potential beneficiary from improving Western Canadian market dynamics, noting the company has approximately 60% gas production with roughly 70% AECO exposure projected for 2026.

While acknowledging the inherent risks associated with early-stage plays, Scotiabank maintained its positive outlook on Spartan Delta, stating the company has made a strong start and is taking the right approach to its development activities.

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