Analysts have revised Strike Energy’s price target downward to A$0.169, citing concerns over cost increases, a discounted stake sale indicating weak confidence, and potential reserve downgrades, leading to a reassessment of project risks and reduced near-term upside.
Analyst Commentary
- Goldman Sachs cites concerns over Strike Energy's recent cost increases, which are considered disappointing.
- The 25% discounted stake sale to Carnarvon signals weak market confidence in the company's valuation.
- Potential for a reserve downgrade at Walyering is weighing on sentiment.
- Neutral rating reflects reduced conviction in near-term upside.
- Price target set at A$0.16 following reassessment of project risks and execution challenges.
What's in the News
- Completed a follow-on equity offering, raising AUD 1.71 million through the issue of 14,258,421 ordinary shares at AUD 0.12 each.
- Entered into a subscription agreement with Carnarvon Energy to issue 741,666,666 shares at AUD 0.12 per share for gross proceeds of AUD 88.99 million, granting Carnarvon up to a 19.9% stake in two tranches, subject to shareholder approval and a 12-month hold period.
- Filed a follow-on equity offering for up to AUD 15 million by issuing 125,000,000 ordinary shares at AUD 0.12 each.
- Scheduled a special shareholders meeting to ratify and approve the above capital raisings and share purchase plan.
Valuation Changes
Summary of Valuation Changes for Strike Energy
- The Consensus Analyst Price Target has significantly fallen from A$0.201 to A$0.169.
- The Consensus Revenue Growth forecasts for Strike Energy has significantly fallen from 37.6% per annum to 14.6% per annum.
- The Future P/E for Strike Energy has significantly risen from 35.48x to 44.11x.
Disclaimer
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