Macquarie cuts PT, rating for Australia's Carnarvon Energy; shares fall

Carnarvon Energy

06/10/2023 24:45

** Analysts at Macquarie cut price target and rating for
Australian oil explorer Carnarvon Energy  CVN.AX  reflecting
increased risking on Dorado project and cash balance
    ** Shares of CVN last down 3.2% at A$0.150
    ** Brokerage cuts target price to A$0.10 from A$0.14 and
rating to "underperform" from "neutral"
    ** Says legal challenges to offshore energy have made new
projects uninvestable, until consultation requirements can be
better defined
    ** "We see few catalysts for CVN to re-rate, given Dorado
FID appears to be on hold until the regulatory environment
improves" - brokerage 
    ** Adds Dorado likely to face delays, and CVN may be
tempted to deploy cash balance on low quality M&A
    ** 3 of 6 analysts rate the stock "buy" or higher and 3
"hold"; their median PT is A$0.23 – LSEG data
    ** CVN stock up 3.3% YTD as of last close 

    

 (Reporting by Echha Jain in Bengaluru)
 ((Echha.jain@thomsonreuters.com))