Morgan Stanley Raises CNQ Target on Strong Oil and Refining Margins

Canadian Natural Resources Limited (NYSE:CNQ) is included among the 14 Safest Stocks with Highest Dividends.

On March 27, Morgan Stanley analyst Devin McDermott raised the firm’s price recommendation on Canadian Natural Resources Limited (NYSE:CNQ) to C$66 from C$52. It reiterated an Equal Weight rating on the shares. The analyst said oil, LNG, and refining margins are at their highest levels since 2022. He added that even with some de-escalation in Iran, it is becoming less likely that these markets will return to previous conditions anytime soon. The firm updated its price assumptions, increasing its 2026 WTI benchmark by 44%, NGLs by 40%, and refining cracks by 35%. It also noted that EBITDA estimates across its North American energy coverage are rising by about 40% for 2026 and 23% for 2027 on average.

Earlier in March, Canadian Natural Resources said its Board of Directors approved a 6.4% increase in its quarterly cash dividend. The dividend was raised to $0.625 per common share, up from $0.5875. The company said it has increased its dividend for 26 consecutive years, with a CAGR of 20% over that period. It added that this track record reflects the Board’s confidence in the sustainability of its business model, the strength of its balance sheet, and the quality of its long-life, low-decline asset base.

Canadian Natural Resources Limited (NYSE:CNQ) is a senior crude oil and natural gas producer. Its operations are focused on Western Canada, the United Kingdom portion of the North Sea, and Offshore Africa.

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