CIBC calls it a ridiculous discount, this was when the stock was at 4.38 so at 3.92 it is even more rediculous.
NuVista trades at 34% of Risked NAV and 3.9x 2011E EV/DACF versus its peers
at 72% and 6.4x, respectively.
We believe NuVista’s share are at a ridiculous discount given that the share price
is below the company’s core NAV (based on booked reserves which includes little
bookings for the Montney), even using future strip pricing. NuVista also offers
investors a cheaper option for playing this Montney trend vs. paying up for its
peers in the area. Our rating remains Sector Outperformer with an $11.50 price