Analyst Ratings Coverage
Scotia Capital issued a research report on Baytex Energy for Tuesday November 28th, and maintained the 12 month target on the tock of $6.75 per share. The analyst also maintained the “Sector Perform” rating
CIBC maintained the “Neutral” rating on the stock, with a 12 month target of $8 per share.
Baytex Stock Analysis
Based on the Baytex Energy Corp stock forecast provided by 10 analysts, the average analyst target price for Baytex Energy Corp is projected to be CAD 7.43 over the next 12 months. This indicates an optimistic outlook among analysts regarding the future performance of Baytex Energy Corp.
The average analyst rating for Baytex Energy Corp is reported to be Strong Buy, suggesting a consensus among analysts that the stock is expected to perform well.
Stock Target Advisor’s own stock analysis of Baytex Energy Corp is reported to be Slightly Bearish. This assessment is based on 3 positive signals and 6 negative signals identified by Stock Target Advisor’s analysis.
As of the last closing, Baytex Energy Corp’s stock price was CAD 5.16. Over recent time frames, the stock has experienced fluctuations: a decrease of -4.62% over the past week, a decline of -14.43% over the past month, and a decrease of -24.23% over the last year.
Fundamental Analysis
Positive Fundamentals
- Positive Cash Flow: The company has demonstrated positive total cash flow in the most recent four quarters. Positive cash flow is crucial for a company’s financial health, indicating that it has more cash coming in than going out.
- Positive Free Cash Flow: The company has generated positive total free cash flow in the most recent four quarters. Free cash flow is a key metric as it represents the cash generated by the business after accounting for capital expenditures.
- High Market Capitalization: The company boasts a high market capitalization, placing it among the largest entities in its sector and in the top quartile. Larger companies often exhibit greater stability and resources.
- Icon: The term “Icon” is likely used to emphasize that the company is well-recognized or has a strong brand presence, which can be a positive factor influencing consumer trust and investor confidence.
Positive Fundamentals
- Poor Capital Utilization: The company’s management has delivered below median return on invested capital in the most recent four quarters compared to its peers. This suggests that the capital invested in the business is not generating returns as efficiently as the industry average.
- Poor Return on Assets: The company’s return on assets in the most recent four quarters is below the median compared to its peers. This indicates that the company is less effective in generating profits from its assets.
- High Volatility: The total returns for this company are volatile and above the median for its sector over the past 5 years. High volatility can introduce additional risk and uncertainty for investors.
- Poor Risk-Adjusted Returns: The company is delivering below median risk-adjusted returns compared to its peers. Even if it is outperforming on raw returns, the risk-adjusted returns are considered unpredictable, advising caution.
- Overpriced on Cashflow Basis: The stock is trading high compared to its peers on a price to cash flow basis. This suggests that investors are paying a premium for the company’s cash flow relative to industry averages.
- Highly Leveraged: The company is positioned in the bottom half compared to its sector peers on debt to equity and is highly leveraged. High leverage can amplify financial risk, especially if the company faces economic challenges or struggles to meet its debt obligations. However, it is important to consider the company’s growth strategy and overall financial health in context.
