Analysts rate Pine Cliff Energy Ltd.(PNE:TSX) with a Strong Buy rating, $2.27 target

Pine Cliff Energy Ltd Stock Analysis:

Analysts rate Pine Cliff Energy Ltd with a consensus Strong Buy rating and a 12-month average target price of $2.27 per share.

Based on the Pine Cliff Energy Ltd stock forecasts from 3 analysts, the average analyst target price for Pine Cliff Energy Ltd is CAD 2.27 over the next 12 months. Pine Cliff Energy Ltd’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Pine Cliff Energy Ltd is Slightly Bearish, which is based on 4 positive signals and 7 negative signals. At the last closing, Pine Cliff Energy Ltd’s stock price was CAD 1.84Pine Cliff Energy Ltd’s stock price has changed by +5.75% over the past week, +0.55% over the past month and +152.05% over the last year.

About Pine Cliff Energy Ltd (PNE:CA:TSX)

Pine Cliff Energy Ltd. engages in the acquisition, exploration, development, and production of natural gas and oil in the Western Canadian Sedimentary Basin. It primarily holds interests in natural gas assets in the Southern and Edson areas; and oil and natural gas assets in the Viking Kinsella and Ghost Pine area of Central Alberta. The company also holds interests in natural gas liquids assets in the Sundance, Carstairs, Garrington, and Harmattan areas of Alberta; and natural gas assets in the Cadillac area of Southern Saskatchewan. As of December 31, 2021, its proved reserves consisted 49,112.6 thousand barrels of oil equivalent (MBOE) and proved plus probable reserves included 62,813.4 MBOE. It also explores for gold, nickel, and copper deposits, as well as platinum group elements in Utah, Ontario, the Northwest Territories, and Nunavut. The company was incorporated in 2004 and is headquartered in Calgary, Canada.

What we like:

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital 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.

What we don’t like:

Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

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 compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

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.

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.

Low Revenue Growth

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

Analysts rate Occidental Petroleum Corporation (OXY:NYE) with a Buy rating and a $77 target

Piper Sandler maintains the $92 OXY stock price target and rates it as Overweight.

Based on the OXY Stock Forecast from 18 analysts, the average analyst OXY stock price target is USD 77.65 over the next 12 months. Occidental Petroleum Corporation’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of OXY stock forecast is Slightly Bearish, which is based on 4 positive signals and 8 negative signals. At the last closing, OXY stock price was USD 67.74OXY stock price has changed by +6.33% over the past week, -1.03% over the past month and +111.69% over the last year.

 

About Occidental Petroleum Corporation (OXY:NYE):

Occidental Petroleum Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, Africa, and Latin America. It operates through three segments: Oil and Gas, Chemical, and Midstream and Marketing. Occidental Petroleum Corporation was founded in 1920 and is headquartered in Houston, Texas.

 

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:

OXY stock forecast shows that the company had positive total cash flow in the most recent four quarters.

Positive free cash flow:

OXY stock forecast shows that the company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth:

OXY stock price has shown top quartile earnings growth in the previous 5 years compared to its sector.

 

What we don’t like:

Poor risk adjusted returns:

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median dividend returns:

OXY stock forecast shows that the company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to book value:

OXY stock price is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis:

OXY stock price 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 capital utilization:

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

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 stock forecast and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Low Dividend Growth:

OXY stock price has shown below median dividend growth in the previous 5 years compared to its sector.