- Vermilion Energy Inc (TSX:VET) (NYSE:VET) price target has been raised to C$28 from C$26 by RBC Capital analyst Greg Pardy.
- The analyst maintained the Sector Perform rating on the shares.
- In March, VET announced an agreement to acquire Leucrotta Exploration Inc. (TSXV:LXE) (OTC:LCRTF) for C$477 million.
- According to Pardy, Vermilion's C$477 million Leucrotta acquisition is a relatively pricy acquisition of a scalable asset that augments its diverse portfolio.
- The analyst mentions that the deal serves to reload Vermilion's drilling inventory in western Canada, which appears strategically sound, but also begs the question as to whether it should high grade its portfolio further via non-core asset sales.
- RBC Capital analyst Luke Davis raised the price target of Leucrotta Exploration from C$1.50 to C$2 while maintaining the Sector Perform rating on the shares.
- Price Action: VET shares are trading lower by 2.86% at $19.70 on NYSE and lower by 2.46% at C$25.33 on TSX on the last check Friday.
