UPDATE: National Bank Financial Upgrades Enerplus Corporation to Outperform On More Positive Outlook
National Bank Financial raises its rating on Enerplus Corporation (NYSE: ERF) from Sector Perform to Outperform while reiterating its price target at C$20.
National Bank Financial notes, "We are upgrading Enerplus to Outperform (from Sector Perform) based on valuation and a more positive financial outlook for the company. The revised dividend level was necessary in our opinion and significantly improves the outlook and value proposition of the company, especially at current valuation levels. We believe the dividend cut was largely priced in and recommend buying the stock at current levels. Our $20 target is based on a 0.9x multiple to our CNAV estimate and reflects a 2013 EV/DACF multiple of 6.8x."
ERF closed at $13.16 on Tuesday.
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