The consensus Analyst Price Target for Strike Energy has been reduced to A$0.184, primarily due to weakened market confidence from Carnarvon’s discounted stake acquisition, rising project costs, and concerns over a potential Walyering reserve downgrade.
Analyst Commentary
- Recent stake acquisition by Carnarvon occurred at a 25% discount, indicating reduced market confidence in Strike Energy’s valuation.
- Noted “disappointing” cost increases, raising concerns over project execution and capital efficiency.
- Potential reserve downgrade at the Walyering field, which could negatively impact Strike Energy’s asset base and growth outlook.
What's in the News
- Strike Energy entered a subscription agreement with Carnarvon Energy, issuing 741,666,666 shares at AUD 0.12 for gross proceeds of nearly AUD 89 million, in two tranches, with Carnarvon to acquire up to a 19.9% stake pending shareholder approval.
- Shares issued to Carnarvon are subject to a 12-month hold period.
- Strike Energy will hold a special/extraordinary shareholders meeting to approve the Carnarvon transaction in Perth.
- The company filed a follow-on equity offering for AUD 15 million, issuing 125,000,000 shares at AUD 0.12 each.
Valuation Changes
Summary of Valuation Changes for Strike Energy
- The Consensus Analyst Price Target has fallen from A$0.201 to A$0.184.
- The Consensus Revenue Growth forecasts for Strike Energy has significantly fallen from 37.6% per annum to 19.3% per annum.
- The Net Profit Margin for Strike Energy has significantly risen from 11.87% to 13.63%.
Disclaimer
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