Morgans continues to recommend caution in the oil & gas sector. Consensus forecasts still have oil prices 63% above spot, suggesting downgrades ahead. The broker has changed its valuation methodology to prioritise resilience over value and apply a gearing discount to target prices. The broker has cut its own 2020 Brent forecast by -39%.

Given Beach Energy is net cash, no gearing discount is applied. Target falls to $1.86 from $2.28. Add retained.

Sector: Energy.

Target price is $1.86.Current Price is $0.99. Difference: $0.87 - (brackets indicate current price is over target). If BPT meets the Morgans target it will return approximately 47% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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