SXY – Credit Suisse rates the stock as Downgrade to Neutral from Outperform

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Credit Suisse believes Senex Energy is well positioned to benefit from higher domestic gas prices, as Project Atlas ramps up over the next two years. Yet, while the company has been touted as a takeover target, no bid has emerged.

This is of concern to the broker, signalling there may be technical “skeletons” at the flagship Western Surat Gas Project in particular. Rating is downgraded to Neutral from Outperform and the target is reduced to $0.36 from $0.50.

The broker asserts the upside is offset by risks to production/cost metrics and sustainability, particularly at WSGP.

Sector: Energy.

Target price is $0.36.Current Price is $0.33. Difference: $0.03 – (brackets indicate current price is over target). If SXY meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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