COE – Morgans rates the stock as Add

Morgans believes Cooper Energy’s in-line result was overshadowed by the market’s primary focus on progress at the Sole Gas Project.

The company’s major focus remains on progressing Phase 2 work planned for the second quarter.

Importantly, customers and banks remain supportive of the company/Sole, highlights the broker.

The analyst has growing confidence in the Otway’s growth profile and expects it to overtake Sole in terms of gas output, post the development of OP3D.

Morgans believes the long-term value proposition remains.

The Add rating is unchanged and the target price is decreased to $0.457 from $0.501

Sector: Energy.

Target price is $0.46.Current Price is $0.35. Difference: $0.11 – (brackets indicate current price is over target). If COE meets the Morgans target it will return approximately 23% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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