What Do Analysts Think About Baytex Energy Corp. (BTE)?

Baytex Energy Corp. (NYSE:BTE) is one of the best long-term penny stocks to invest in. On November 17, CIBC analyst Dennis Fong reaffirmed a Hold rating on Baytex Energy Corp. (NYSE:BTE), setting a price target of C$5.25. However, Raymond James upgraded the stock to Outperform from Market Perform on November 13, raising the price target to C$5.50 from C$3.50.

The rating update came after Baytex Energy Corp. (NYSE:BTE) announced the sale of its U.S. Eagle Ford assets to an undisclosed buyer on November 12, which according to the analyst, repositions the company into a “high-return” heavy oil producer with a “best-in-class” balance sheet. The firm considers the sale to be immediately accretive, providing Baytex Energy Corp. (NYSE:BTE) with enough capital to shift its attention to an “aggressive” share repurchase program and repay all of its outstanding debt.

Baytex Energy Corp. (NYSE:BTE) released this update on November 12, stating that it entered into a definitive purchase and sale agreement for the sale of its U.S. Eagle Ford assets to an undisclosed buyer for $2.305 billion. Management reported that the transaction positions the company as a  “focused, high-return Canadian energy producer”, and that monetizing its U.S. Eagle Ford assets would support it to deliver meaningful shareholder returns, bolster its balance sheet, and support capital allocation to its highest-return opportunities.

Scotiabank analyst Kevin Fisk also upgraded Baytex Energy Corp. (NYSE:BTE) to Outperform from Sector Perform on November 13 following the update, raising the price target to C$5.25 from C$4. The analyst considers the company selling its Eagle Ford assets to be “a significant turning point”, adding that the proceeds can help strengthen its balance sheet, a problem that Baytex Energy Corp. (NYSE:BTE) has historically faced.

Baytex Energy Corp. (NYSE:BTE) is an oil and gas exploration and production company involved in the acquisition, production, and development of natural gas and crude oil in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States.

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Disclosure: None. This article is originally published at Insider Monkey.