Australia's Viva Energy: Jefferies positive on medium-term refining outlook

Waypoint REIT

12/05/2022 23:51

** Analysts at Jefferies are more positive on the
medium-term refining outlook for Viva Energy  VEA.AX  than they
were pre-COVID
    ** Jefferies raises PT to A$3.2 from A$3.00; maintains "buy"
rating
    ** The refiner on Thursday posted a 65% jump in operating
earnings for the first four months of 2022, helped by strong
refining margins  urn:newsml:reuters.com:*:nL3N2X34DM
    ** Jefferies says non-refining earnings were better than
expected and with the COVID-19 jet recovery yet to come, they
remain positive on co 
    ** Says it believes VEA is outperforming peers in commercial
markets, given their more diverse exposure
    ** Brokerage expects margins to remain elevated for the rest
of 1H22; sees 1H22 refining EBITDA, on a replacement cost basis
(RC), of A$262 mln ($179.65 mln) 
    ** Jefferies hikes its FY22 underlying EBITDA (RC) estimates
by 29.5% to A$969.1 mln as a result of an improved longer-term
outlook for refining and commercial segments 
    ** Eight of 10 analysts rate the stock "buy" or higher, two
"hold"; their median PT is A$2.7 – Refinitiv Eikon data 
    ** Stock is up 13.2% this year, as of last close 
    



($1 = 1.4584 Australian dollars)

 (Reporting by Navya Mittal in Bengaluru)
 ((navya.mittal@thomsonreuters.com))