TSE:VET
Vermilion Energy Inc (VET.TO)
Financials 
Technical Analysis 
A relative underperformer. Pays a yield under 3%. They're trying to re-establish their Canadian base in the Montney after stumping their toe in Europe and the U.S. Investors see better valuations in Canada or the U.S. as oppose to conglomerate North American and European names. Dividend is too low for him.
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Premium contentOur PAST TOP PICK with VET has triggered its stop at $18. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 5%, when combined with our previous recommendations.
Premium contentWe again reiterate VET as a TOP PICK. Cash reserves are growing, while debt is retired and shares bought back. It trades under book value and supports a ROE of 36%. We continue to recommend a stop at $18, looking to achieve $25 -- upside potential of 23%. Yield 1.7%
(Analysts’ price target is $25.18)It has exposure to European gas and has had excess profits. European governments decided to tax these profits so this brought the share price down. Also European gas prices have been coming down. If you want exposure to gas go to a diversified company. She does not have exposure to energy producers.
Premium contentWe again reiterate VET as a TOP PICK. The company has aggressively reduced debt all the way down to one year's cash flow and its energy portfolio is well diversified. It trades at 6x earnings, under book value and supports a 36% ROE. We recommend trailing up the stop (from $16) to $18, looking to achieve $25 -- upside potential over 25%. Yield 1.8%
(Analysts’ price target is $25.18)Premium contentWe reiterate VET as a TOP PICK following recently reported earnings, that saw EPS beat expectations by over 30%. It trades at 7x earnings, under book value and supports a ROE of 36%. Cash reserves are growing while the company aggressively retires debt and buys back shares. We recommend trailing up the stop (from $14.50) to $16.00, looking to achieve $24.50 -- upside potential of 27%. Yield 1.8%
(Analysts’ price target is $24.57)Premium contentWith strong cash flows allowing aggressive debt retirement and share buybacks, we reiterate VET as a TOP PICK. About one-third of its production is based outside North America, diversifying its cash flow. Windfall taxes in Europe, have taken some of the wind out of the sales, but the fundamentals still look good as it supports a 68% ROE and trades at 3.5x free cash flow versus peers at 7x. We recommend trailing up the stop (from $13.00) to $14.50, looking to achieve $25.00 – upside potential over 40%. Yield 1.9%
(Analysts’ price target is $25.85)
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Company has turned around - last quarter very strong. Believes energy prices will remain high. Company progressing in de-leveraging. Free cash flow will be returned to shareholders (~50%). Dividends are robust, and company on the way to recovery. Good valuation that offers safety for long term investors.