Citi cites weaker outlook on Australia's Beach Energy, maintains 'sell' rating
BUZZ-Citi cites weaker outlook on Australia's Beach Energy, maintains 'sell' rating ** Brokerage Citi maintains "sell" rating and A$0.80 price target Australia's Beach Energy BPT.AX
** Says the energy company faces growing uncertainty over its growth outlook, shareholder returns and Australia's domestic gas policy settings
** Cuts its FY27 core net profit forecast for the oil and gas producer by 13%, citing lower production and higher depreciation costs
** BPT on Thursday swung to an annual profit and forecast softer production in FY27
** Citi notes the company still needs to demonstrate consistent operational performance, including at the Waitsia project
** Adds BPT's new capital management framework has increased uncertainty around shareholder returns, leaving investors with less visibility on future dividends as management focuses on reinvestment opportunities
** Of 12 analysts tracking the stock, one rates it "buy" or higher, six "hold" and five "sell" or lower; their median PT is A$0.85, LSEG-compiled data shows
** Stock down 24.7% YTD
(Reporting by Roshan Thomas in Bengaluru)
Recent news on Beach Energy
See all newsAustralian gas reservation scheme gains backing of Senate committee
Brief: Beach Energy To Materially Expand Acreage Position In Taroom
Brief: Beach Energy Says FY27 Guidance Maintained For Production
Australia's Beach Energy rises on higher quarterly production
Australian energy stocks jump as Citi stays positive on improved commodity prices