SEH - Macquarie rates the stock as Neutral
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The company has negotiated an eight-year extension to the Linxing PSC until 2036 but in return has reduced its interest and relinquished some acreage.
Macquarie forecasts a -20% fall in Linxing 2P reserves because of the changes. While the outlook for domestic gas is particularly positive there is also much risk, Macquarie observes.
The broker reduces the target to $0.25 from $0.33 and downgrades to Neutral from Outperform. Sector: Energy. Target price is $0.25.Current Price is $0.23. Difference: $0.02 - (brackets indicate current price is over target). If SEH meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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