Gen III Oil Corporation Receives a Buy from Canaccord Genuity

By Carrie Williams

In a new note to investors today, an analyst has provided a rating update for the NA sector company, Gen III Oil Corporation (TSXV: GIII). The company received a Buy rating from Canaccord Genuity’s analyst Kimberly Hedlin, with a C$1.20 price target.

Hedlin noted:

“We view this as a significant de-risking event which should solidify yield output, capital costs and operating costs. Following the completion of the FEED study, PCL is also expected to provide a fixed price contract for the construction of the Bowden re-refinery. In our view, these events should help with financing efforts, and we note that earlier this month, Gen III announced that seven entities had entered into NDAs to conduct project financing due diligence. Financing remains the key risk we see to our target price and is the basis for our Speculative risk qualifier.”

According to TipRanks.com, Hedlin is ranked #862 out of 4840 analysts.

Currently, the analyst consensus on Gen III Oil Corporation is a Moderate Buy with an average price target of C$1.20.

Based on Gen III Oil Corporation’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of C$2.23 million. In comparison, last year the company had a GAAP net loss of C$1.81 million.

GEN III Oil Corp. operates as an oil processing company. It offers re-refining which uses motor oil that captures limited amount of lubricating oil produced from virgin crude and transforms it back into base lubricating oil. The company project include Bowden, which is located in Alberta.

The company’s shares closed on Monday at C$0.51, close to its 52-week low of C$0.47.