Operating cash flow for Karoon Energy in the 2H was US$303m compared to forecasts by consensus and Morgans for US$250m and US$243m, respectively, helped by a one-off tax saving from a Brazilian government tax incentive.

Overall, the broker assesses a "strong" result, with both strong (in-line) earnings and cash flow.

Management left all major FY24 production guidance unchanged.

Add-rated Karoon remains one of Morgans top sector preferences. The target rises to $3.00 from $2.80.

Sector: Energy.

Target price is $3.00.Current Price is $1.98. Difference: $1.02 - (brackets indicate current price is over target). If KAR meets the Morgans target it will return approximately 34% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2024 Acquisdata Pty Ltd., source FN Arena