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STX: Future Outlook Will Reflect Lower Revenue And Equity Raise Dynamics

Decarbonization Trends Will Curtail Gas Role Yet Spur Modest Resilience

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STX
AnalystLowTarget
Not Invested
Published 13 Jul 2025

Update shared on 12 Dec 2025

Fair value Decreased 27%
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AnalystLowTarget's Fair Value
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1Y
-46.3%
7D
-4.3%

Analysts have reduced their price target on Strike Energy from A$0.15 to A$0.11, reflecting a more cautious view on revenue growth and profitability. This now implies a higher future earnings multiple to justify the stock's valuation.

What's in the News

  • Strike Energy issued a notice of annual general meeting and formally recommended shareholders vote against the election of Darren Ferdinando to the company board, highlighting ongoing investor activism dynamics (company filing).
  • The company completed a follow on equity offering totaling approximately AUD 36.0 million, issuing over 300 million new ordinary shares at AUD 0.12 per share to bolster its capital position (company announcement).

Valuation Changes

  • Fair Value: reduced from A$0.15 to A$0.11, a material downgrade in the assessed equity value per share.
  • Discount Rate: increased slightly from 6.61 percent to 6.67 percent, modestly raising the required return applied in valuation models.
  • Revenue Growth: revised sharply lower from an expected 33.78 percent expansion to a projected 5.44 percent contraction, indicating a significant deterioration in the growth outlook.
  • Net Profit Margin: trimmed from 15.10 percent to 13.86 percent, reflecting a somewhat weaker profitability profile.
  • Future P/E: increased substantially from 22.6 times to about 69.1 times, implying a much higher earnings multiple is now required to support the current share price.

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Disclaimer

AnalystLowTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystLowTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystLowTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.