Morgans lowers its target to $0.29 from $0.34 and retains its Add rating, after Cooper Energy lowered FY21 guidance, on what appears to be higher expected production costs. FY21 guidance is for underlying earnings (EBITDAX) of $30m and a loss (NLAT) of -$26m.

Adjusting the assumed Orbost toll profile has reduced the analyst's near-term earnings forecasts and valuation. The broker still believes shares have recently become oversold relative to the risks faced at Sole.

Sector: Energy.

Target price is $0.29.Current Price is $0.25. Difference: $0.04 - (brackets indicate current price is over target). If COE meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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