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Strategies & Market Trends : Dino's Bar & Grill

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From: Goose941/1/2021 9:41:23 PM
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Topaz Energy (TPZ-T) Desjardins analyst Justin Bouchard rates "buy" in new coverage. Mr. Bouchard set a share target of $20, which is $2.70 ahead of the consensus.

Mr. Bouchard calls Topaz "a low-risk investment vehicle for exposure to an attractive dividend, with ample dry powder for continued growth." Mr. Bouchard says Topaz has a "unique business model which, to the best of our knowledge, has no directly comparable analogue, at least not in North America." Mr. Bouchard says in a note: "

The TPZ business model appears to borrow a page from fields such as animal husbandry and horticulture where, through a process of selective breeding, the ideal is to create a hybrid that combines the desired characteristics of two different parents. Applying that analogy to TPZ, an argument can be made that its unique cash flow profile is a hybridization resulting from the pairing of an upstream E&P royalty business with an energy infrastructure model.

Broadly speaking, E&P royalty cash flow is characterized by volume and commodity exposure but is unburdened by the underlying costs related to production and asset maintenance."
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