Update shared on 02 Dec 2025
Fair value Decreased 1.47%Analysts have marginally lowered their fair value estimate for Beach Energy from A$1.21 to A$1.20 per share, citing modest adjustments to profit margin and revenue growth projections. They also highlighted a recent upgrade to Buy based on improved outlook.
Analyst Commentary
Bullish Takeaways
- Bullish analysts have increased their rating on Beach Energy, reflecting greater confidence in the company’s execution and growth trajectory.
- The recent upgrade to Buy is supported by an improved outlook for operational efficiency and better-than-expected margin resilience.
- Raising the price target signals optimism regarding Beach Energy’s ability to deliver on revenue growth forecasts.
- There is a view that the company’s current valuation remains attractive given the strengthened outlook and recent performance enhancements.
Bearish Takeaways
- Some analysts maintain a cautious stance, highlighting that adjustments to profit margins and revenue projections have been modest rather than transformative.
- There is ongoing concern that industry volatility could limit further upside to the current fair value estimate.
- Execution risk remains a consideration, particularly if operational improvements do not translate as projected into earnings growth.
What's in the News
- Beach Energy announced first quarter 2026 production results. Total output from the Western Flank reached 371 kboe, marking a 16% decrease compared to the previous quarter (Announcement of Operating Results).
- Western Flank oil production for the quarter was 247 kbbl, representing an 18% decline from the prior quarter (Announcement of Operating Results).
- Gas and gas liquids production in the Western Flank totaled 124 kboe, down 13% quarter over quarter (Announcement of Operating Results).
Valuation Changes
- Fair Value Estimate has decreased slightly from A$1.21 to A$1.20 per share.
- Discount Rate remains unchanged at 6.67%.
- Revenue Growth forecast has improved modestly, moving from -1.55% to -1.28% year over year.
- Net Profit Margin projection has edged down from 26.45% to 25.91%.
- Future P/E ratio estimate is largely stable, shifting marginally from 6.32x to 6.31x.
Disclaimer
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