Update shared on 25 Oct 2025
Analysts have raised their price target on Seplat Energy by £0.90 to £4.15 per share, following an updated assessment of the company’s outlook.
Analyst Commentary
Bullish Takeaways
- Bullish analysts highlight the recent upward revision of Seplat Energy's price target, which reflects improved confidence in the company’s ability to execute on its growth plans.
- Continued buy ratings suggest favorable expectations for both operational performance and future cash flow generation.
- Analysts point to a solid outlook in core markets, supporting a more optimistic valuation for the shares.
- The company’s proven ability to meet performance targets is seen as a key driver behind the positive sentiment surrounding the updated price forecast.
Bearish Takeaways
- Bearish analysts highlight potential challenges in maintaining the current pace of growth and meeting heightened expectations set by the new target.
- There is some caution regarding execution risks that could impact the realization of projected value.
- Concerns remain over sector volatility, which could weigh on valuation despite the company’s recent improvements.
What's in the News
- Board meeting scheduled for October 27, 2025, to discuss Q3 2025 unaudited financial results and other agenda items (Board Meeting).
- Planned third quarter 2025 dividend increased by approximately 10% to 5.0 cents per share. This sets a new base for future payouts (Dividend Increases).
- Production results for the first half of 2025 show a 178% year-over-year increase, averaging 134,492 boepd. This exceeds guidance midpoints, with growth in both liquids and gas output (Announcement of Operating Results).
- Seplat Energy reaffirms its 2025 production guidance of 120,000 to 140,000 boepd, with estimated unit operating costs between $14.0 and $15.0 per boe (Corporate Guidance New/Confirmed).
Valuation Changes
- The discount rate has risen slightly from 15.47% to 15.55%, reflecting a minor increase in perceived risk factors.
- The revenue growth forecast remains effectively unchanged at 11.03% year-over-year.
- The net profit margin is stable, holding at approximately 4.94%.
- The future P/E ratio has decreased very marginally from 32.84x to 32.81x, indicating little change in valuation expectations relative to forecasted earnings.
- The analyst fair value estimate remains steady at £3.84 per share.
Disclaimer
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