Bell Potter ups PT, rating for Australia's LGI on gas management deal

Lgi

06/02/2024 03:01

** Analysts at Bell Potter raise price target for
Australia's LGI  LGI.AX  to A$2.55 from A$2.32 and upgrade stock
to "buy" from "hold"
    ** See positive impact of the long-term gas management
agreement with Bingo Industries, which the renewable energy firm
plans to develop in two stages 
    ** Co expects project capex to be A$16.5 mln ($10.71 mln) -
A$18.5 million across the next 15 months
    ** Broker makes minor downgrades to FY24 earnings estimate
on downward price forecast 
    ** Raises EBITDA for FY25 and FY26 by 4% and 14%
respectively on increased capex levels, significant gas flow
growth, among others
    ** Shares of LGI rise as much as 4.4% to A$2.16, their
highest since Sept. 27 
    ** Stock has risen 3.5% this year, as of last close


($1 = 1.5401 Australian dollars)

 (Reporting by Sneha Kumar in Bengaluru)
 ((Sneha.Kumar@thomsonreuters.com;))