Canaccord Genuity raises target price on Arrow Exploration following banner year
Analysts at Canaccord Genuity raised their target price on oil miner Arrow Exploration from 42.0p to 46.0p on Wednesday after the group's Q3 results were the best in the company's history.
Canaccord Genuity said Arrow's results showed the benefits of its investment were now delivering growing operating cash flow, but said that it was "only a taster of the potential" in 2024.
The Canadian bank expects the most significant operational catalysts in the next 12 months to be the performance of its CN horizontal development wells and the Tapir exploration drilling results.
In addition, it anticipates its Tapir licence partners to formally start the licence extension process in 2024 - another important market catalyst.
"We make a number of adjustments to our production profile, cost and capex outlook, tax assumption, and certain asset riskings. As a result, we increase our risked NPV12.5 target price to 46.0p (from 42.0p) which excludes the planned 2024 exploration (risked 6.0p, unrisked 14.0p)," said Canaccord, which reiterated its 'buy' rating on the stock.
Reporting by Iain Gilbert at Sharecast.com