Credit Suisse initiates coverage on Strike Energy with an Outperform rating and $0.28 target. The main asset is the recent gas discovery, West Erregulla, in the Perth Basin which may enable up to 250TJ/d for domestic gas development.
This presents one of the largest onshore gas discoveries in Australia with relatively low development costs as it is close to infrastructure.
Sector: Energy.
Target price is $0.28.Current Price is $0.21. Difference: $0.07 – (brackets indicate current price is over target). If STX meets the Credit Suisse target it will return approximately 25% (excluding dividends, fees and charges – negative figures indicate an expected loss).
