Karoon Energy's 4Q results were strong, according to Morgans, and FY22 oil production beat the broker's and the consensus estimate. An impressive 4Q result from the Bauna operation in offshore Brazil was highlighted.

While management cut FY22 production cost guidance, the analyst cautions cost pressures will now likely increase, as for peers.

The broker feels the market is overstating execution risk on the Bauna intervention program and Patolla development and retains an Add rating. The target rises to $3.20 from $3.15.

Sector: Energy.

Target price is $3.20.Current Price is $1.88. Difference: $1.32 - (brackets indicate current price is over target). If KAR meets the Morgans target it will return approximately 41% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2022 Acquisdata Pty Ltd., source FN Arena