Investor sentiment in the oil market has eroded after two once-in-a-decade downturns in the last five years, explains Morgans. Nonetheless, recent events have combined to leave the broker bullish on stocks within the oil and gas coverage.
These events are the prospect of a weakening US dollar, a building supply response and an eventual covid recovery.
As a result of upgrading short and medium-term oil price forecasts, the analyst increases the price target for Central Petroleum to $0.12 from $0.089.
The Hold rating is maintained.
Target price is $0.12.Current Price is $0.12. Difference: $0.00 – (brackets indicate current price is over target). If CTP meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).