Analysts rate Birchcliff Energy Ltd(BIR:TSX) with a Strong Buy rating and a $12 target

by: Gillian Lawrence
Birchcliff Energy Ltd

Analysts rate Birchcliff Energy Ltd with a consensus Strong Buy rating and a 12-month average target price of $12.28 per share.

Yesterday CIBC raised the target price on Birchcliff Energy Ltd. to $13.50 from $12 and maintained the Neutral rating on the company’s stock.

Based on the Birchcliff Energy Ltd. stock forecasts from 9 analysts, the average analyst target price for Birchcliff Energy Ltd. is CAD 12.28 over the next 12 months. Birchcliff Energy Ltd.’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Birchcliff Energy Ltd. is Slightly Bullish , which is based on 5 positive signals and 4 negative signals. At the last closing, Birchcliff Energy Ltd.’s stock price was CAD 11.61Birchcliff Energy Ltd.’s stock price has changed by +15.29% over the past week, +31.33% over the past month and +152.39% over the last year.

About Birchcliff Energy Ltd. (BIR:CA:TSX)

Birchcliff Energy Ltd., an intermediate oil and natural gas company, acquires, explores for, develops, and produces natural gas, light oil, condensate, and natural gas liquids in Western Canada. The company holds interests in the Montney/Doig resource play located approximately 95 km northwest of Grande Prairie, Alberta. Its asset portfolio also includes various other properties, including the Elmworth and Progress areas of Alberta. As of December 31, 2021, the company had interests in various gas plants, oil batteries, compressors, facilities, and infrastructure; and 200,712 net acres of undeveloped land, as well as proved plus probable reserves of 1,022 million barrels of oil equivalent. Birchcliff Energy Ltd. was incorporated in 2004 and is headquartered in Calgary, Canada.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

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.

Superior Earnings Growth

This stock has shown top quartile earnings 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.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Poor return on equity

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

Poor capital utilization

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

Disclaimer

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