Morgans consider deal completion is the largest short-term catalyst for Karoon Energy and expects a gradual re-rating to continue as the market gains conviction.

Specifically, the finalisation on the Bauna transaction has gained traction after the company has been issued new environmental operational licenses by the Brazilian environmental regulator IBAMA.

The add rating is maintained. The target price is increased to $1.56 from $1.50.

Sector: Energy.

Target price is $1.56.Current Price is $0.82. Difference: $0.74 - (brackets indicate current price is over target). If KAR meets the Morgans target it will return approximately 47% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2020 Acquisdata Pty Ltd., source FN Arena