Following 1H results for Central Petroleum, Morgans explains that after the sell down of the Amadeus operations to both deleverage and fund growth, the company is no longer an earnings story.
To remove the long-term discount for the stock, the analyst feels the company either requires a new discovery or needs to de-risk Range coal seam gas, the flagship growth project.
A roll forward of the broker’s valuation model results in an increased target price of $0.12 from $0.11. Hold.
Sector: Energy.
Target price is $0.12.Current Price is $0.12. Difference: $0.00 – (brackets indicate current price is over target). If CTP meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
