ATB Capital Lowers Price Target for Vermilion Energy to C$17.50

Investment firm ATB Capital has revised its price target for Vermilion Energy (TSE:VET) from C$20.00 to C$17.50. This update was communicated to investors in a research note released on Tuesday. Despite the price reduction, ATB Capital maintains an "outperform" rating for the stock, which suggests they expect Vermilion Energy to perform better than the overall market.

The new target price implies a possible upside of approximately 33.28% when compared to the stock’s previous closing price.

Recent Ratings Changes

Other research firms have also recently made adjustments to their pricing outlooks for Vermilion Energy. For instance, JPMorgan Chase & Co. lowered its target price for the company from C$18.00 to C$15.00 on September 12. Shortly thereafter, Royal Bank of Canada cut its estimate from C$20.00 to C$17.00 on September 17. Additionally, BMO Capital Markets downgraded Vermilion Energy from an "outperform" rating to "market perform" while lowering its price target from C$20.00 to C$16.00 in a report issued on October 4.

Furthermore, on October 22, Canaccord Genuity Group also reduced its target price from C$20.00 to C$19.00. Conversely, National Bankshares raised its estimate slightly from C$17.50 to C$18.00 and maintained an "outperform" rating.

Market Performance

As it stands, analysts have given Vermilion Energy a consensus rating of "Moderate Buy", with a combined average target price estimated at C$18.86. Of these analysts, three have assigned a hold rating, while eight have given it a buy recommendation.

On Tuesday, shares of Vermilion Energy traded at C$13.13, representing an increase of 2.8% or C$0.36. The trading volume for the day was relatively active with 758,465 shares exchanged, although this fell slightly short of the average volume of 784,095 shares. Currently, the company has a market capitalization of C$2.05 billion, along with a debt-to-equity ratio of 36.63.

Earnings Overview

Vermilion Energy recently released its earnings report on November 6. For the most recent quarter, the company reported earnings of C$0.33 per share, which was below analysts' expectations of C$0.45, missing the mark by C$0.12. The company generated revenues of C$490.10 million during the quarter, falling short of the anticipated C$497.45 million. Furthermore, the data revealed a negative return on equity of 24.83% and a significant net margin of -45.56%.

Looking ahead, analysts project that Vermilion Energy will report an approximate earnings per share of 1.40 for the current fiscal year.

Company Overview

Vermilion Energy Inc. is an international oil and gas production company engaged in various operations, including exploration and production. Their focus is primarily on acquiring and optimizing assets in North America, Europe, and Australia. Revenue largely comes from the production and sale of petroleum and natural gas.

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