Cooper Energy has delivered production results that were weaker than Morgan Stanley expected, while this was offset by higher sales volumes given an increase in purchases of third-party gas.
The main risk, the broker observes, is the upcoming Basker Manter abandonment program. The broker assesses Cooper Energy will need to expand its debt facilities, as debt increases significantly in 2022 given the outlay required for the abandonment.
Equal-weight retained. Target is $0.34. Industry view: Attractive.
Target price is $0.34.Current Price is $0.25. Difference: $0.09 - (brackets indicate current price is over target). If COE meets the Morgan Stanley target it will return approximately 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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