Strike Energy top loser on ASX 200, Macquarie downgrades to 'underperform'

Strike Energy

01/07/2024 05:15

** Shares of gas explorer Strike Energy  STX.AX  fall as
much as 14.3% to A$0.240, top loser on ASX 200 benchmark index
 .AXJO 
        ** Stock set for worst day since mid-Feb, if losses hold
 
  
    ** Macquarie downgrades stock to "underperform" from
"neutral", PT unchanged at A$0.22
        ** Brokerage says market is overly optimistic about
timeline and value of co's Erregulla power project; STX gained
about 24% last week after positive 
    drilling updates
     at the project
  
    ** Macquarie sees more attractive opportunities in rival
companies like Karoon Energy  KAR.AX  which has stronger free
cash flow, and in Cooper Energy  COE.AX  and Carnarvon Energy
 CVN.AX  for more probable M&A potential 
    ** As of last close, STX down 41.7%, KAR down 9.9% and CVN
down 15.2% YTD, while COE up 73.1% 

 (Reporting by Himanshi Akhand in Bengaluru)
 ((Himanshi.Akhand@thomsonreuters.com;))