UPDATE: Raymond James Initiates Coverage On TransGlobe Energy On Multiple Positive Factors

In a report published Friday, Raymond James analyst Pavel Molchanov initiated coverage on

with an Outperform rating and $9.00 price target. In the report, Raymond James noted, “We are initiating coverage of TransGlobe Energy Corp. (previously covered by Raymond James Ltd.). Among E&P companies with a U.S. listing, TransGlobe is one of the few offering pure-play overseas exposure. "The Egypt portfolio has its issues, including delayed receivables, but we like 1) the low-risk drilling program with exploration optionality; and 2) free cash flow that supports a juicy dividend yield. Bearing in mind the deep value multiples, we are initiating with an Outperform rating and a High Risk suitability rating.” TransGlobe Energy closed on Thursday at $7.11.