John M. White, an analyst from Roth MKM, has initiated a new Buy rating on Granite Ridge Resources (GRNT).
John M. White has given his Buy rating due to a combination of factors influencing Granite Ridge Resources’ potential for growth and profitability. Granite Ridge has demonstrated a robust history of production growth, with a significant 51% increase in production over the past two years, which indicates a strong track record and the potential for continued growth. Moreover, the company has maintained favorable reserve replacement costs, which suggests efficiency in developing new reserves and the potential for sustaining production levels at a lower cost.
Additionally, White highlights the company’s extensive inventory of undrilled locations, which provides a clear path for future development and production. The strong dividend yield, which is well above the average for its peer group, coupled with a healthy coverage ratio, suggests that the dividend is sustainable and attractive to investors. Meanwhile, Granite Ridge’s low leverage, with a Debt/EBITDA ratio significantly below the peer group average, implies a sound financial structure that could lead to higher market valuation. White’s target price of $8.80 is based on a net asset value analysis that considers the company’s proven and probable reserves, underpinned by conservative oil and gas price estimates.
According to TipRanks, M. White is an analyst with an average return of -0.9% and a 43.98% success rate. M. White covers the Energy sector, focusing on stocks such as Amplify Energy, Evolution Petroleum, and Northern Oil And Gas.
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Granite Ridge Resources (GRNT) Company Description:
Executive Network Partnering Corp is a blank check company.
Read More on GRNT:
- Granite Ridge Resources Unveils New Investor Presentation
- Granite Ridge Resources backs FY24 guidance
- Granite Ridge Resources reports Q1 adjusted EPS 12c, consensus 10c
- Granite Ridge Resources initiated with an In Line at Evercore ISI
- Granite Ridge Resources Bolsters Financial Standing with Credit Enhancements
