Husky a top pick among major Canadian integrated firms

Despite an uncertain time horizon for major growth projects, the oil and energy firm's ability to generate free cash flow shouldn’t be overlooked.

Joe Gemino 1 September, 2016 | 5:00PM

 

 

Joe Gemino: Husky remains our top pick among the major Canadian integrated firms. The stock trades at a modest discount of 10% to our fair value estimate and below the industry average of a 20% premium. While the company's major growth projects face an uncertain time horizon, we believe that the market is overlooking Husky's ability to generate free cash flow in the low oil price environment. 

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Husky Energy Inc3.45 CAD-1.99

About Author

Joe Gemino

Joe Gemino  Joe Gemino, CPA, is an equity analyst for Morningstar covering Canadian oil and Gas companies.

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