Benzinga | Nov 13, 2020 02:33PM EST

BMO initiates Topaz Resources With Bullish Rating

Topaz Resources, Inc. (OTC:TOPZ) has exposure to the growth of Tourmaline Oil (OTC:TRMLF) and a rise in natural gas prices, according to BMO Capital Markets.

The Topaz Analyst: Ray Kwan initiated coverage of Topaz Resources with an Outperform rating, with a price target of $17.

The Topaz Thesis: Topaz Resources is a "low-risk, high distribution energy company," Kwan said.

"With the company flush with >$140 million in cash, we believe Topaz will continue to be active on the acquisition front, further accelerating cash flow per share growth, and differentiating itself from its peers, which generally have struggled to show positive growth during this downturn," the analyst wrote in the note.