Daily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow
Energy picks
Scotiabank strategist Kevin Fisk identifies upside in oil and gas stocks that may pleasantly surprise investors,
“At $65 WTI and $4 HH [Henry Hub gas], we expect our coverage of companies to offer investors average 2026 shareholder returns of 6 per cent (dividend and buybacks). Further, AAV, BIR, CNQ, EQT, and TPZ are expected to achieve their net debt targets by the end of 2026 or earlier, which could trigger an increase in shareholder returns. The sector also provides meaningful upside to higher commodity prices with the average shareholder return increasing to 8 per cen7 at $75 WTI and $5 HH. In our view, energy names continue to return a significant amount to capital to investors, even at lower oil prices, and offer investors superior FCF yields relative to other GICS sectors. Current commodity prices support solid share…
