National Bank Thinks Surge Energy’s Stock is Going to Recover

By Jason Carr

Surge Energy (SGYResearch Report), the Materials sector company was revisited today, and remains undervalued for at least one analyst on the street. Analyst Dan Payne from National Bank reiterated a Buy rating, with a C$2.25 price target.

According to TipRanks.com, Payne is ranked #4614 out of 5141 analysts.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Surge Energy with a C$2.29 average price target, a 57.9% upside from current levels. In a report issued on January 7, BMO Capital also reiterated a Buy rating on the stock with a C$2 price target.

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Based on Surge Energy’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of C$9.03 million. In comparison, last year the company had a GAAP net loss of C$13.08 million.

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

The company’s shares closed on Monday at C$1.45, close to its 52-week low of C$1.31.