The broker notes Karoon Energy was just about to make transformational acquisition before oil prices collapsed in March. The broker now sees the Bauna deal as unlikely to progress, with valuations and debt markets severely impacted.
However Karoon is keeping its options open, and lower-for-longer oil prices mean it’s a buyers market. Add and $1.13 target retained.
Target price is $1.13.Current Price is $0.59. Difference: $0.54 – (brackets indicate current price is over target). If KAR meets the Morgans target it will return approximately 48% (excluding dividends, fees and charges – negative figures indicate an expected loss).