Morgans upgrades the rating to Add from Hold and lifts the target price to $0.34 from $0.30. The broker views the share price as assuming a material equity raising. It’s considered more likely deals with both APA Group ((APA)) and customers will likely keep lenders comfortable.
This should avoid a scenario where the company’s banks request fresh equity be injected, explains the analyst. On a longer term basis Morgans also sees upside potential from the progression of OP3D (Otway) and Manta (Gippsland).
Target price is $0.34.Current Price is $0.27. Difference: $0.07 – (brackets indicate current price is over target). If COE meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges – negative figures indicate an expected loss).