[ET Net News Agency, 16 August 2017] Macquarie Research raised its target price for
Husky Energy to C$15 from C$14.5 on a 4% higher 2018 FFOPS (Funds From Operations Per
Share), and maintained its "neutral" rating.
Husky is 40.18% owned by CK Hutchison Holdings (00001). It is an integrated energy
company headquartered in Calgary, Alberta. Its shares are traded on the Toronto Stock
exchange.
Husky announced the acquisition of a refinery in Superior, Wisconsin for US$435m, which
will be funded from Husky's cash on hand and their credit facilities. The transaction is
expected to close in 4Q.
The research house said Husky trades at 6.5x 2018 EV/DACF, below North American large
cap peers at 8x, which suggests relative value within the space; however, the company's
FCF has largely been dedicated to the West White Rose expansion, which doesn't provide
near-term growth and reduces visibility for returns to shareholders. Macquarie views Husky
as a safer name within the oil universe, but sees limited near-term catalysts to pique
investor interest. (KL)