Morgans suggest now is an opportune time to invest in the oil and gas sector after gaining further conviction both oil and LNG markets have moved off their lows.
Looking at the next 12 months, the broker expects returning base load oil consumption to further contribute to recovering oil prices, which should remain in a more typical mid-cycle range of US$50-$65/bbl.
The analysts believe attractive upside potential remains beyond this base case as consensus is too optimistic on the pace in which it expects oil supply to respond to improving demand.
The Add rating and target price of $0.43 are unchanged for Cooper Energy.
Sector: Energy.
Target price is $0.43.Current Price is $0.40. Difference: $0.03 – (brackets indicate current price is over target). If COE meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
