Citi downgrades rating for Australia's Beach Energy to 'sell'

Beach Energy

18/06/2024 22:38

** Analysts at Citi downgrades oil and gas explorer Beach
Energy  BPT.AX  to "sell" from "neutral" following company's
strategic review
    ** BPT forecasts FY25 capital expenditure between A$700
mln($465.64 mln) and A$800 mln; production between 17.5 and 21.5
MMboe
    ** Citi says Beach Energy's FY25 capex guidance was higher
than their cautious forecasts but with no apparent requisite
increase in medium-term production
    ** "We think the share price has more work to reflect the
lower quality nature of the portfolio" - Citi    
    ** Citi says company's strong balance sheet is helpful,
though the means to improve quality are still ways off
    ** 11 of 16 analysts rate the stock "buy", four "hold" and
one "sell"; their median PT is A$1.75 - LSEG data
    ** Stock down 4.4% YTD, as of last close 
   


($1 = 1.5033 Australian dollars)

 (Reporting by John Biju in Bengaluru)
 ((John.Biju@thomsonreuters.com;))