Cooper Energy delivered on production in the quarter but sales revenue fell well short of Morgans' expectations due to -32% lower spot gas sales. The polishing unit at Orbost had to be taken back offline, lowering the broker's December quarter expectations for Sole.

Putting the slower than expected start to FY23 aside, Morgans sees Cooper Energy as holding upside risk with a dependable floor. What will drive the upside in our view is Cooper demonstrating it can do a better job operating Orbost than APA Group ((APA)), once it has control.

A roll-forward of valuation sees a target increase to 30c from 29c, Add retained.

Sector: Energy.

Target price is $0.30.

© 2022 Acquisdata Pty Ltd., source FN Arena