Stifel Nicolaus analyst Chris Wheaton maintained a Buy rating on Serica Energy (SQZ – Research Report) yesterday and set a price target of p221.00.
Chris Wheaton has given his Buy rating due to a combination of factors that suggest a positive outlook for Serica Energy. The company’s risked Net Asset Value (NAV) has been increased by approximately 10%, reflecting a more favorable production forecast and reduced cash tax expectations for 2025. Additionally, the inclusion of the Kyle development into the risked NAV further supports the positive assessment.
Wheaton also highlights the low risk of Serica Energy missing its production guidance, assuming the planned maintenance and additional wells for the Triton hub proceed as scheduled. The Triton hub’s historical production capacity and the planned improvements suggest that the company is well-positioned to meet its production targets. These factors, combined with a significant upside to the price target, underpin Wheaton’s Buy rating for Serica Energy.