Credit Suisse updates forecasts to account for its global oil outlook. The broker also increases FY21 forecasts for APLNG production by 1.7%.
In an absolute sense, the stock appears attractive, Credit Suisse suggests, trading at a -23% discount to the discounted cash flow valuation that incorporates a long-term Brent price of US$60/bbl and an Australian dollar at US$0.70.
However, energy markets are a negative factor as retail competition is increasing and wholesale prices are weak. Neutral maintained. Target is reduced to $4.70 from $5.30.
Sector: Energy.
Target price is $4.70.Current Price is $4.38. Difference: $0.32 – (brackets indicate current price is over target). If ORG meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
