Shares of Perpetual Energy Inc (TSX: PMT), a mineral exploration company, rallied significantly during the past few trading sessions on a joint venture deal for its Edson Alberta Wilrich assets and upgrades by a few analysts. The company’s shares jumped over 15% touching its new intraday highs during the last two consecutive trading sessions with significant number of shares exchanging hands. During the last trading session, PMT was among the top gainers in the Canadian diversified mining sector after powering 14.8% higher and ended at its 52-week high of C$2.25 while recording huge volumes of 1.2 million shares. During the last 5-trading sessions, PMT gained 28.6% with 5-day average trading volumes of 817,437 shares, while the stock accumulated over 34% in the past one month with 30-day average volumes of 237,301 shares. The stock provided returns of over 102% year-to-date.
Recently, PMT announced a joint venture agreement with a joint venture partner for a portion of its lands in the Edson area of West Central Alberta resulting in increased net production and funds flow growth. Following the JV announcement, analysts at TD Securities upgraded the stock to buy from hold increasing its 12-month price target to C$3.00 from the earlier target of C$2.00 per share. PMT did not identify the other party in the joint venture but the analyst noted it was Calgary-based Freehold Royalties Ltd., which announced a similar deal. Moreover, analysts at RBC Capital Markets and FirstEnergy Capital Corp also upgraded the stock boosting their price targets.
Company Description:
Perpetual Energy Inc (TSX: PMT) is an independent natural gas producer. The Company owns, operates, and develops oil and gas properties throughout Canada.
1-Year Stock Chart:
Source: Bloomberg
