Canadian Natural Resources Stock Sees Bullish Outlook After Q2 Earnings

Canadian Natural Resources (CNQ) reported neutral Q2 results with revenue down 3% YoY and EPS exceeding expectations. Analysts are bullish on the stock with a consensus price target of $37.79, implying a 21% upside from current levels. Raymond James raised its price target to C$54 and maintained an Outperform rating.

Canadian Natural Resources Limited (CNQ) recently reported its Q2 2025 earnings, showcasing a mixed performance with revenue down 3% year-over-year (YoY) but earnings per share (EPS) exceeding expectations. The company's stock has seen a positive outlook from analysts, with a consensus price target of $37.79, indicating a 21% upside from current levels.

The company reported an EPS of $0.71, surpassing analyst forecasts of $0.63, marking a 12.7% surprise. Revenue came in at $8.7 billion, slightly above the expected $8.68 billion. Despite these positive earnings, the stock experienced a pre-market decline of 3.29%, closing at $30.31 from a prior $31.34. However, the stock later rebounded, rising 1.09% to $29.55 in aftermarket trading. This movement places the stock within its 52-week range of $24.65 to $37.91, reflecting a cautious yet optimistic investor sentiment.

Canadian Natural Resources maintained strong fundamentals with a P/E ratio of 10.4x and an impressive 25-year track record of consistent dividend payments. The company's adjusted fund flow reached CAD 3.3 billion, while adjusted net earnings reached CAD 1.5 billion. With a robust EBITDA of nearly $13 billion and an attractive dividend yield of 5.72%, the company returned CAD 1.6 billion to shareholders through dividends and share repurchases.

Looking ahead, Canadian Natural Resources aims to maintain oil sands mining production around 600,000 barrels per day and plans to close the AOSP swap in Q3 2025. The company anticipates continued dividend growth and is targeting a net debt reduction to $15 billion by 2026. The EPS forecast for the upcoming quarters suggests a gradual decrease, with the FY2025 EPS expected at $2.3 and FY2026 at $2.38.

Analysts are bullish on the stock, with Raymond James raising its price target to C$54 and maintaining an Outperform rating. Despite the mixed Q2 results, the company's strong operational performance and strategic acquisitions have analysts optimistic about its future prospects.

[1] https://www.investing.com/news/transcripts/earnings-call-transcript-canadian-natural-q2-2025-beats-expectations-93CH-4203471