Morgans lowers its target to $0.29 from $0.34 and retains its Add rating, after Cooper Energy lowered FY21 guidance, on what appears to be higher expected production costs. FY21 guidance is for underlying earnings (EBITDAX) of $30m and a loss (NLAT) of -$26m.
Adjusting the assumed Orbost toll profile has reduced the analyst’s near-term earnings forecasts and valuation. The broker still believes shares have recently become oversold relative to the risks faced at Sole.
Sector: Energy.
Target price is $0.29.Current Price is $0.25. Difference: $0.04 – (brackets indicate current price is over target). If COE meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
