In a recent analysis, CIBC has revised its price target for Paramount Resources (PRMRF, Financial), bringing it down from C$24.50 to C$22. Despite this adjustment, the Outperformer rating on the shares remains unchanged.
CIBC analyst Jamie Kubik highlighted the unexpected decision by OPEC+ to fast-track the end of voluntarily reduced oil production, which has unsettled the market. This move has contributed to a downturn in oil prices, intensifying concerns regarding the equilibrium of supply and demand in the near future.
In light of these market shifts, CIBC has updated its oil price forecasts, integrating these changes into their first-quarter earnings preview for the energy sector. The impact of OPEC+'s decision underscores the volatile nature of the energy markets and its influence on company valuations like Paramount Resources.
