Canadian Natural’s Strong Financial Performance and Strategic Moves Justify Buy Rating

Tip Ranks
2025.11.07 07:35
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Raymond James analyst Michael Barth has maintained a Buy rating on Canadian Natural (CNQ) stock, citing strong financial performance and strategic moves. The company exceeded Adjusted Funds Flow from Operations (AFFO) estimates, aided by lower cash taxes and record natural gas production. Despite slightly lower operating margins, stable operational performance and consistent capital expenditure policies support the positive outlook. Another report also reiterated a Buy rating with a C$52.00 price target, indicating confidence in the stock's growth potential.

Raymond James analyst Michael Barth, CFA has maintained their bullish stance on CNQ stock, giving a Buy rating yesterday.

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Michael Barth, CFA has given his Buy rating due to a combination of factors that suggest Canadian Natural’s stock is positioned for potential growth. The company’s recent financial performance showed a significant beat in Adjusted Funds Flow from Operations (AFFO), surpassing both Raymond James’ and consensus estimates. This was primarily due to lower cash taxes, which, while likely temporary, provided a notable boost to the financial results.
Additionally, Canadian Natural’s production levels were slightly above expectations, with record natural gas production contributing to this outcome. Although the operating margin was slightly below estimates, the overall operational performance was stable, and the company’s capital expenditure and free cash flow allocation policies remained consistent. These factors, combined with the strategic asset swap and stable guidance for future production, underpin the Buy rating as they indicate a solid foundation for future performance.

In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a C$52.00 price target.

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