Byron Capital Markets released research on Canadian Spirit Resources Inc. (SPI) reiterating their speculative buy rating and $3.25/share target price. Highlights from the research include:
1. Analysis of the recent Sasol/Talisman Energy deal resulting in transaction metrics equalling $31,000/acre for Talisman's Farrell Creek property adjacent to SPI's land.
2. Significance to SPI - $31,000/acre multiplied by SPI's net Montney land position of 19,700 acres yields a value for the company of $8.20/share.
3. Byron concludes that SPI is "undervalued and the shares have significant upside potential from current levels.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment