Origin Energy's sale of 27% of its stake, or 10% of total, of APLNG to private equity suggests to Morgans the expectation of a stronger for longer oil market. To reach the implied enterprise value of the deal, the broker would need to assume a long term oil price forcast of US$75/bbl.

The broker expects most of the funds will be used to reduce gearing. Target rises to $5.96 from $5.27, Add retained.

Sector: Energy.

Target price is $5.96.Current Price is $5.38. Difference: $0.58 - (brackets indicate current price is over target). If ORG meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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