Research firm Macquarie Equities Research reaffirmed its OUTPERFORM rating for Seaview Energy (CVU/A:TSX) and maintained its target price of C$1.50. The rating was based up Macquarie's view that the junior oil and gas company's stock is undervalued at present.

Seaview Energy's stock closed at C$0.66 on August 18 and opened at C$0.67 on August 19. In the last 52 weeks, the company hit a low of C$0.61 and a high of C$1.49.

Seaview released its 2Q results on August 17, which indicated funds from operation (FFO) of C$0.07 and production of 2,739 barrels of oil equivalent per day. The reported FFO was slightly below Macquarie's prediction of C$0.08, and production of liquids was lower than expected. This decrease in liquids is expected to reduce near-term cash flow.

The equities research company states that Seaview's exploration of Wapiti Cardium could potentially increase RENAV by C$0.79 per share. This increase would raise the company's RENAV to C$2.02 per share. Macquarie's target share price of C$1.50 is based on an increased multiple of 5x 2012 EV/DACF. 

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