Morgans increases its oil price forecasts across FY22-26 and lifts its long-term real price estimate to US$ 65/bbl from US$62/bbl. While there's thought to be long-term value in the sector, some caution is applied due to short-term volatility.

The target price for Beach Energy rises to $1.95 from $1.86 from the increased oil price forecasts, despite an increase in the broker's weighted average cost of capital (WACC) assumption. The Add rating is maintained.

Sector: Energy.

Target price is $1.95.Current Price is $1.69. Difference: $0.26 - (brackets indicate current price is over target). If BPT meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2022 Acquisdata Pty Ltd., source FN Arena