Australia's Strike Energy at near 6-month high as analysts expect strong cash flows

Talon Energy

18/12/2023 01:07

** Australia's Strike Energy  STX.AX  rises as much as 3.9%
to A$0.468, its highest since June 22
    ** Morningstar hikes fair value estimate for Strike Energy
by just over 10% to A$0.50, sets "very high" uncertainty rating 
    ** Broker raises fair value estimate due to expectations of
average 10% increase in expected gas price realization over the
next 10 years, including expected gas price realization to $5.80
per gigajoule by FY28
    ** Analysts see anticipated strong cash flows and potential
for resource expansion put co in a powerful position 
    ** Brokerage expects successful acquisition of joint venture
partner oil and gas explorer Talon Energy  TPD.AX  this month to
shore up the path to growth
    ** Morningstar expects co's EBITDA to grow to A$420
mln($281.23 mln) by fiscal 2028, higher than previous estimate
of A$380 mln
    ** All five analysts rate the stock "buy"; their median PT
is A$0.54 – LSEG data
    ** Stock up 18.1% this year, as of last close
    
    ($1 = 1.4934 Australian dollars)

 (Reporting by Neha Soni in Bengaluru)
 ((Neha.Soni@thomsonreuters.com))