5 Undervalued Canadian Stocks To Buy Now

3. Vermilion Energy Inc. (NYSE:VET)

Number of Hedge Fund Shareholders: 21

Analysts’ Consensus Upside: 48.8%

There’s been a 250% increase in the number of funds long Vermilion Energy Inc. (NYSE:VET) since Q3 2020, and the stock has responded in kind, gaining over 400% during that time. Todd J. Kantor’s Encompass Capital Advisors added a 1.1-million share stake in VET to its 13F portfolio during Q3, while Steve Cohen’s Point72 Asset Management nearly doubled the size of its Vermilion Energy position to 791,450 shares.

Vermilion Energy Inc. (NYSE:VET)’s Q3 sales surged by 79% to CAD965 million ($703 million), with its trailing twelve month sales nearly tripling compared to 2020 sales and its gross profit surging by over 500%. The company did face several headwinds during the latest quarter however, which caused it to suspend its share repurchases in Q4, including a weak Canadian dollar and the implementation of a windfall tax on energy companies in Europe.

Stifel and TD Securities have CAD42 ($30.60) and CAD41 ($29.87) price targets on Vermilion Energy Inc. (NYSE:VET) respectively, along with ‘Buy’ ratings, suggesting close to 100% upside over the next year. BMO Capital has a CAD36 ($26.22) price target and ‘Market Perform’ rating on VET shares.