Analysts Ecstatic Over Baytex Energy

| About: Baytex Energy (BTE)

As expected, Baytex Energy Trust (NYSE:BTE) chopped its monthly payout to shareholders Wednesday, down from C$0.18 a month to C$0.25, a 28% drop. It also unveiled a modest spending plan.

To paraphrase reaction from the analysts: Buy! Buy lots! Or at the very least, hold!

To properly quote reaction from the analysts:

Canaccord Adams:

Baytex remains our top pick within the energy trust space, and we continue to believe there is significant long-term development and value potential in its existing heavy oil assets and potentially from its new light oil resource plays.

Buy, with a C$26 target price.

Jeff Martin, an analyst at Peters & Co. Ltd:

We continue to be impressed with the trust’s operational results and its focus on adding additional drilling inventory, thereby positioning itself to successfully convert to a corporation in 2011. However, we believe the distribution cut announced [Wednesday] was not enough and, in the context of current commodity prices, adds too much incremental debt throughout 2009.

Sector perform, with a C$17 target price.

Kristopher Zack, an analyst at Raymond James:

We like the financial discipline demonstrated by the trust given the sharp decline in commodity prices.

Outperform, with a C$22 target price.

Grant Hofer, UBS Securities Inc:

"We view this as a prudent move." Buy, with a C$21.50 price target.