Company News

BUZZ-Athabasca Oil: RBC starts with "sector perform"

** RBC Capital Markets initiates coverage on Canadian oil and gas producer with “sector perform” and C$1.15 price target

** Brokerage says ATH’s portfolio is “resoundingly” weighted towards thermal assets, which means reserves are enough for decades, along with some exposure to shale

** Co’s business is capital intensive with higher cost structure compared to peers - RBC

** Says brokerage could become more bullish on stock with continued improvement of cost structure, reduced volatility in cash flow and effort to allocate more free cash flow to light oil business

** 7 of 12 brokerages rate the stock “buy” or higher, 4 “hold” and 1 “sell”; median PT is C$1.50

** Up to Monday’s close, stock has fallen 27% this year (Reporting by Debroop Roy in Bengaluru)