In general, Credit Suisse sees limited near-term positive catalysts for Beach Energy ahead of a material production uplift from mid-2022 (Otway, then Waitsia).
The broker sees near-term risk of disappointments versus consensus for Beach, but material upside on DCF basis, with momentum to potential return in 2022 driven by production increases, and potentially a high price LNG environment for Waitsia.
Outperform retained. Target falls to $1.50 from $1.96.
Sector: Energy.
Target price is $1.50.Current Price is $1.03. Difference: $0.47 – (brackets indicate current price is over target). If BPT meets the Credit Suisse target it will return approximately 31% (excluding dividends, fees and charges – negative figures indicate an expected loss).
