Jefferies sees upside in non-refining businesses for Australia's Viva Energy

Waypoint REIT

07/06/2023 22:20

** Jefferies sees upside in non-refining businesses for
Australia's Viva Energy  VEA.AX  despite an incident at the
Geelong refinery 
    ** Viva Energy on Wednesday reported the failure of a
contractor crane at its flagship Geelong refinery in Victoria,
which led to a compressor being dropped to the ground on Tuesday
afternoon
    ** Brokerage sees upside for VEA due to very strong retail
margins and opportunity from co's recent acquisitions 
    ** Jefferies maintains PT at A$3.50, while rating the stock
"buy" 
    ** Brokerage, however, downgrades group EBITDA (RC)
estimates by 12.7% in CY23 and refining estimates by 45.0% in
CY23, due to higher upcoming operation and repairs
    ** Sees VEA recovering A$40 mln from insurance in the second
half of the year for this incident  
    ** Six of 10 analysts rate the stock "buy" and higher, four
"hold"; their median PT is A$3.43 – Refinitiv data
    ** Stock has risen 13.9% this year, as of last close

 (Reporting by Nausheen Thusoo in Bengaluru)
 ((Nausheen.Thusoo@thomsonreuters.com;))