Morgan Stanley has revised its price target for Canadian Natural Resources Limited (CNQ, Financial), bringing it down to C$51 from the previous C$56. The investment firm maintains an Equal Weight rating on the company's shares. This adjustment comes as part of a broader update to its North American energy sector assessments, prompted by the recent dip in oil prices.
The firm's updated analysis projects that cash flow estimates for 2025 and 2026 will fall below existing market expectations. This revision underscores the impact of volatile oil fundamentals, which currently present a challenging environment for small and mid-cap producers and those with potential execution risks.
In light of these market conditions, Morgan Stanley has opted to adopt a more conservative stance, assuming a larger discount to net asset value implied multiples. Despite these adjustments, the investment firm maintains an In-Line view on the exploration and production (E&P) sector, reflecting its cautious outlook for the near-to-medium-term oil market dynamics.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for Canadian Natural Resources Ltd (CNQ, Financial) is $37.82 with a high estimate of $45.43 and a low estimate of $28.85. The average target implies an upside of 36.54% from the current price of $27.70. More detailed estimate data can be found on the Canadian Natural Resources Ltd (CNQ) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, Canadian Natural Resources Ltd's (CNQ, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Canadian Natural Resources Ltd (CNQ, Financial) in one year is $33.30, suggesting a upside of 20.22% from the current price of $27.7. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Canadian Natural Resources Ltd (CNQ) Summary page.
