BMO Capital Thinks Cardinal Energy’s Stock is Going to Recover

By Austin Angelo

Yesterday, an analyst has provided a rating update for the Materials sector company, Cardinal Energy (TSX: CJ). Analyst Ray Kwan from BMO Capital rated Cardinal Energy (TSX: CJ) a Buy, setting a C$11 price target.

According to TipRanks.com, Kwan is ranked 0 out of 5 stars with an average return of -5.0% and a 35.3% success rate. Kwan covers the Basic Materials sector, focusing on stocks such as Pengrowth Energy Corp, Enerplus Corp, and Encana Corp.

Currently, the analyst consensus on Cardinal Energy is Strong Buy and the average price target is C$10.13, representing a 60.3% upside.

In a report issued on May 23, RBC Capital also reiterated a Buy rating on the stock with a C$11 price target.

Cardinal Energy’s market cap is currently C$497.8M and has a P/E ratio of 0.

Cardinal Energy Ltd. engages in the exploration, development and production of oil and natural gas. Its projects include slave lake, wainwright and bantry. The company is focused on operations in Alberta and Saskatchewan. Cardinal Energy was founded on December 21, 2010 and is headquartered in Calgary, Canada.

The company’s shares closed last Thursday at $6.32, close to its 52-week low of $6.12.