08:53 AM EDT, 06/19/2024 (MT Newswires) -- RBC Capital Markets and CIBC Capital Markets both raised their price targets on Advantage Energy Ltd. ( AAVVF ) (AAV.TO, AAV) to $12 from $11.

"Advantage's $450 Million acquisition of Charlie Lake assets boosts the company's mix and margin, while also diversifying the portfolio and paving the way for meaningful regional synergies," RBC analyst Michael Harvey said in a note to clients.

"Conversely, increased debt levels put the buyback program (a positive investor focal point) on hiatus until 2026, when the majority of the upside/FCF related to the deal should start to weigh in," Harvey said, maintaining a Sector Perform rating on Advantage shares.

CIBC analyst Jamie Kubik said Advantage's asset acquisition from privately-held Longshore Resources "provides a synergistic increase to the company's oil weighting."

"Management's current grading of its asset level returns ranks the Charlie Lake below AAV's Montney targets; however, we expect there to be opportunities for cost and drilling efficiency wins to see this improve under new stewardship," Kubik said in a note to clients.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)