First-half results were in line with expectations. Operating expenditure was ahead of expectations and this, along with sustaining capital expenditure, remains the key uncertainty and driver of value, Credit Suisse suggests.
The time to start accumulating the stock may be nearing and market concerns regarding pricing may be overdone.
That said, Credit Suisse still asserts, for those who remain wary of being long CSG in the ramp-up phase, a preference for Strike Energy ((STX)).
Rating is upgraded to Outperform from Neutral. Target is $0.37.
Sector: Energy.
Target price is $0.37.Current Price is $0.35. Difference: $0.02 – (brackets indicate current price is over target). If SXY meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
