In a report released today, Chris Wheaton from Stifel Nicolaus maintained a Sell rating on Capricorn Energy PLC (CNE – Research Report), with a price target of p240.00.
Chris Wheaton has given his Sell rating due to a combination of factors impacting Capricorn Energy PLC’s financial outlook. The company’s FY25 guidance is seen as disappointing, with a notable decline in production estimates compared to previous years. This decline in production, coupled with capital expenditure forecasts exceeding expectations, raises concerns about the company’s operational efficiency and financial management.
Additionally, the anticipated return of capital to shareholders from the Senegal disposal payment is now uncertain due to potential tax obligations and outstanding payments from third parties. The lack of progress in renegotiating key licenses, which are crucial for shareholder value, further contributes to the negative outlook. These factors collectively result in a Sell rating, with a target price of 240p per share.