BMO Capital’s Outlook for This Canada’s Energy Sector Company

By Austin Angelo

Wall Street analyst has provided a review for the Materials company yesterday, but retained the same rating on the stock. BMO Capital’s analyst Ray Kwan reiterates their Buy rating on the shares of Surge Energy (TSX: SGY), with a C$3.25 price target.

According to, 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 Surge Energy is Moderate Buy and the average price target is C$3.58, representing a 44.4% upside.

In a report issued on May 11, Canaccord Genuity also reiterated a Buy rating on the stock with a C$4 price target.

Based on Surge Energy’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of C$47.41 million and quarterly net profit of C$7.67 million. In comparison, last year the company earned revenue of C$25.32 million and had a GAAP net loss of C$3.68 million.

Surge Energy, Inc. is an oil and gas exploration, development and production company. It operates light and medium gravity crude oil properties, primarily in Alberta, Saskatchewan and Manitoba characterized by oil in place, crude oil reservoirs with low recovery factors. The company was founded on January 26, 1998 and is headquartered in Calgary, Canada.

The company’s shares closed last Thursday at $2.48.