JPMorgan upgrades Vermilion Energy on valuation
Vermilion Energy (VET) – JPMorgan upgraded the stock on valuation.
The agency upgraded the rating on the oil and gas exploration and production company to Overweight from Neutral. Morgans price target is C$29.00 ($21.17 USD)
We agree with JP Morgan on Vermilion Energy. We will not go as high a price target in the short-term for VET as we have spring and summer to cross until we get to better pricing for Nat Gas for winter ’23 – ’24. Our reasoning is simply buy an over-sold valuation. VET is healthy, paying down debt, buying back stock and just bumped it upcoming dividend by 25%. A short-term (one to three month) 10% to 20% rally would be a target of $13.68 to $14.92. The current dividend is about 3.2%. VET is a LOTM: Ten Under $10 for a Double position with an original purchase price of $5.49 on Feb, 2 2021. We still consider VET a long-term buy for a double from the current price.
LOTM COMMENT: The “market” have taken a hit over the past 28 months. This is fertile ground for the next big movers to provide three to ten times upside on your returns. The “market,” prices in the forward four to eight months results. Does anyone not know the negative news that is out there? Plant your seeds for the next big growth period.
For Actionable Stock Ideas, consider a subscription to Tom’s LOTM Blog. We are more controled speculator, than diversified investor or trader. We use 100% loss/risk on some purchases. At times we dollar cost average into losing positions. Volatility is our friend not something to be feared. We let our winners win and do not like paying taxes. See our website for our doubling to a Million$ game. We were playing this game of doubles before Patrick Ben-David talked about it. This blog is not for everyone.
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