September quarter production, up 22%, was slightly ahead of Morgans’ estimates. Revenue from gas sales was up 32% versus the prior quarter, supported by higher gas prices from new contracts and better production, which offset lower revenue from oil.
A further delay to Sole is disappointing but immaterial to the broker’s investment thesis. Morgans envisages a real opportunity for Cooper Energy as an emerging mid-cap stock. Add rating maintained. Target rises to $0.69 from $0.67.
Sector: Energy.
Target price is $0.69.Current Price is $0.57. Difference: $0.12 – (brackets indicate current price is over target). If COE meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
