A frost-covered pipe transporting cooled gas in the yard of the Comprehensive Gas Treatment Unit No.3 at the Gazprom PJSC Chayandinskoye oil, gas and condensate field, a resource base for the Power of Siberia gas pipeline, in the Lensk district of the Sakha Republic, Russia, on Monday, Oct. 11, 2021.Reviews and recommendations are unbiased and products are independently selected. Postmedia may earn an affiliate commission from purchases made through links on this page.
“Furthermore, this strategy affords downside protection, especially after energy prices have surged in such a short period of time,” Belski noted. The BMO analyst’s defensive positioning in energy is in contrast to his overall bullish view on the TSX market, which he expects to reach 22,000 points by the end of the year, from its current level of just under 21,000 points.
“Despite the strong outperformance year to date, valuations have remained broadly stable as price performance has only kept pace with improving earnings and profitability,” the BMO analyst said. “Indeed, the sector remains a deep value sector, in our opinion, suggesting limited buy-in to the current commodity price rally.”
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