Morgans lowers the rating to Hold from Add and the target to $0.30 from $0.39 given short-term uncertainty around the path to reaching nameplate at Sole. The broker expects near-term underperformance while APA Group ((APA)) aims to lift production and capital works.
While taking a conservative stance, the broker remains confident in the long-term outlook and intrinsic value in the Gippsland and Otway Basin assets.
Sector: Energy.
Target price is $0.30.Current Price is $0.28. Difference: $0.02 – (brackets indicate current price is over target). If COE meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
