In a report released today, Chris Wheaton from Stifel Nicolaus maintained a Hold rating on Ithaca Energy PLC (ITH – Research Report), with a price target of p138.00.
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Chris Wheaton’s rating is based on a combination of factors that reflect the current valuation and future prospects of Ithaca Energy PLC. The company has shown improvement in its business quality and resilience following the merger with ENI UK, which has been factored into its valuation. While the medium-term targets set by the company appear achievable, the forecasted cash flow and dividend payouts suggest a cautious approach.
Despite the potential for significant free cash flow, the likelihood of reinvestment into development projects rather than increased shareholder returns influences the Hold rating. The company’s production forecasts and commodity price assumptions also play a role, as they impact the financial outlook and risk profile. Overall, the Hold rating reflects a balanced view of the company’s potential and the risks associated with its future capital allocation decisions.
In another report released on March 27, Morgan Stanley also maintained a Hold rating on the stock with a £1.60 price target.
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