Macquarie updates oil price revisions, raising 2021 oil price forecasts by 3.1% to US$50/bbl and lowering 2022 estimates by -4.9% to US$53.75/bbl.
The broker assesses Carnarvon Petroleum has performed well and downgrades to Neutral from Outperform. Target is steady at $0.30.
While there is potential for more upside in testing the Apus & Pavo oil prospects there is also the risk associated with these projects and the likely requirement for more equity ahead of the final investment decision on Dorado.
Sector: Energy.
Target price is $0.30.Current Price is $0.28. Difference: $0.02 – (brackets indicate current price is over target). If CVN meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
