National Bank of Canada Initiates Coverage of Strathcona Resources with an Outperform Rating, $42 Price Target

11:07 AM EDT, 06/30/2025 (MT Newswires) -- National Bank of Canada over the weekend initiated coverage of Strathcona Resources (STHRF) with an outperform rating and $42.00 price target.

The bank said the price target implies a total return of 42% including the base dividend, and was based on its 2026 annual estimates that capture the recent divestiture of the company's natural gas and Montney portfolio.

The bank said Strathcona trades at a reasonable discount of 25% to the oil sands peers, which is expected to close as the company improves liquidity and executes on its heavy oil growth plan, National Bank said.

"Strathcona Resources (STHRF) provides investors with pure-play oil sands exposure to long-life development opportunities at what we view as a relative discount to the peer group," National Bank said. "Unique in many ways, the company effectively offers public investors access to long-term, private-style strategy where Strathcona leverages a value investing approach that embeds intrinsic value across the development of the portfolio over the long term."

Price: 30.06, Change: -0.21, Percent Change: -0.69

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