Analysts rate Athabasca Oil Corp(ATH:TSX) with a Hold rating and a $2 target

by: Gillian Lawrence
Athabasca Oil Corp

Analysts rate Athabasca Oil Corp with a consensus Hold rating and a 12-month average target price of $2.57 per share.

Last week STA Research maintained Athabasca Oil Corp with a Hold rating and a target price of $2 on the company’s stock.

Based on the Athabasca Oil Corp stock forecasts from 3 analysts, the average analyst target price for Athabasca Oil Corp is CAD 2.57 over the next 12 months. Athabasca Oil Corp’s average analyst rating is Hold . Stock Target Advisor’s own stock analysis of Athabasca Oil Corp is Slightly Bullish , which is based on 6 positive signals and 5 negative signals. At the last closing, Athabasca Oil Corp’s stock price was CAD 2.49Athabasca Oil Corp’s stock price has changed by +6.41% over the past week, +18.01% over the past month and +271.64% over the last year.

About Athabasca Oil Corp (ATH:CA:TSX)

Athabasca Oil Corporation engages in the exploration, development, and production of light and thermal oil resource plays in the Western Canadian Sedimentary Basin in Alberta, Canada. The company operates through Thermal Oil and Light Oil segments. Its principal properties are in the Greater Placid and Greater Kaybob areas near the Town of Fox Creek in northwestern Alberta; and the Leismer and Hangingstone projects located in the Athabasca region of northeastern Alberta. The company produces light and medium crude oil, tight oil, conventional natural gas, shale gas, and natural gas liquids; and bitumen from sand and carbonate rock formations. As of December 31, 2021, it held approximately 889,000 net acres of mineral resource leases, licenses, and permits, which include approximately 347,000 net acres of oil sands leases and permits, and approximately 337,000 net acres of petroleum and natural gas leases in the Athabasca region of northwestern Alberta; approximately 204,000 net acres of petroleum and natural gas leases in northwestern Alberta; and had an interest in approximately 254 gross wells of bitumen, crude oil, and natural gas. The company was formerly known as Athabasca Oil Sands Corp. and changed its name to Athabasca Oil Corporation in May 2012. Athabasca Oil Corporation was incorporated in 2006 and is headquartered in Calgary, Canada.

Most Recent Analyst ratings for Athabasca Oil Corp:

What we like:

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector.

Disclaimer

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