Scotiabank Forecasts Strong Price Appreciation for Whitecap Resources (TSE:WCP) Stock

Key Points

• Scotiabank raised its price objective on Whitecap Resources from C$14.00 to C$15.00, maintaining a "sector perform" rating and implying roughly a 28.98% upside from the prior close.
• Analyst sentiment is broadly positive with a MarketBeat consensus of "Buy" and a consensus price target of C$14.25; several brokers (Raymond James, TD, National Bank) have issued Buy/Strong Buy ratings or C$15 targets.
• WCP shares traded at C$11.63 (market cap C$14.12B) with a P/E of 10.29; the company reported quarterly EPS of C$0.17 and a director recently purchased shares, indicating some insider buying.

Whitecap Resources (TSE:WCP - Get Free Report) had its price objective raised by Scotiabank from C$14.00 to C$15.00 in a research note issued to investors on Tuesday,BayStreet.CA reports. The brokerage presently has a "sector perform" rating on the stock. Scotiabank's price target would suggest a potential upside of 28.98% from the company's previous close.

WCP has been the topic of a number of other research reports. Raymond James Financial lifted their target price on shares of Whitecap Resources from C$14.00 to C$15.00 and gave the company a "strong-buy" rating in a research note on Thursday, October 23rd. TD Securities raised their price target on Whitecap Resources from C$13.00 to C$14.00 and gave the company a "buy" rating in a report on Thursday, October 23rd. Capital One Financial raised Whitecap Resources to a "strong-buy" rating in a research note on Monday, October 27th. Desjardins increased their target price on Whitecap Resources from C$13.00 to C$13.50 and gave the stock a "buy" rating in a research report on Friday, October 24th. Finally, National Bankshares set a C$15.00 price target on Whitecap Resources and gave the stock an "outperform" rating in a report on Friday, January 9th. Four equities research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus price target of C$14.25.

Whitecap Resources Stock Performance

Shares of WCP stock remained flat at C$11.63 during trading hours on Tuesday. 2,946,668 shares of the stock were exchanged, compared to its average volume of 5,468,706. The firm has a market capitalization of C$14.12 billion, a price-to-earnings ratio of 10.29, a PEG ratio of -0.33 and a beta of 0.62. The business has a 50 day moving average of C$11.44 and a two-hundred day moving average of C$10.74. Whitecap Resources has a 52-week low of C$6.87 and a 52-week high of C$12.02. The company has a current ratio of 0.88, a quick ratio of 0.67 and a debt-to-equity ratio of 21.58.

Whitecap Resources (TSE:WCP - Get Free Report) last announced its earnings results on Wednesday, October 22nd. The company reported C$0.17 earnings per share for the quarter. Whitecap Resources had a net margin of 24.23% and a return on equity of 15.86%. The business had revenue of C$1.55 billion during the quarter. Equities research analysts forecast that Whitecap Resources will post 1.1226131 EPS for the current year.

Insider Buying and Selling

In related news, Director Bradley John Wall bought 2,800 shares of the business's stock in a transaction on Wednesday, October 29th. The shares were bought at an average price of C$10.70 per share, for a total transaction of C$29,960.00. Following the completion of the purchase, the director directly owned 3,800 shares of the company's stock, valued at approximately C$40,660. This trade represents a 280.00% increase in their ownership of the stock. Company insiders own 0.84% of the company's stock.

About Whitecap Resources

Whitecap Resources Inc is engaged in the business of acquiring, developing, and holding interests in petroleum and natural gas properties and assets. The company acquires assets with discovered petroleum initially in place and low current recovery factors. Light oil is the primary byproduct of Whitecap's Canadian assets. To extract petroleum products from its resources, the company uses horizontal drilling, in addition to multistage fracturing technology. Crude oil is the leading revenue generator out of the basket of energy products sold by Whitecap.

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