Post by
sohpie on Jan 02, 2022 8:18am
SB1M Upgraded to Buy and target price
Upgraded to Buy and target price increased: We think it is fair to assign some upside potential to a possible (and likely?) compensation for historical costs, which previously not has been included in our SOTP valuation. Therefore, we increase our target price to NOK 4/share (from 1.5). We upgrade from Neutral to Buy. Our target price corresponds to P/NAV of ~0.9x and is highly sensitive to assessment of the potential compensation from the government in Quebec.
Comment by
pierrelebel on Jan 03, 2022 10:05am
NOK 4- is worth about Cdn$ 0.56
Comment by
nozzpack on Jan 04, 2022 8:27pm
Regardless of the compensation arrangement with Quebec or any approved success of its carbon recycling project, Questerre is very much undervalued in relation to its assets outside Quebec, including Alberta, Sask and Jordan. Any cash compensation can quickly be used to expedite the development of these advanced projects. So, I view $0.56 as a short term target.
Comment by
sohpie on Jan 05, 2022 3:58am
https://finansavisen.no/nyheter/olje/2022/01/05/7796922/finansdirektor-mener-verdiene-kan-18-dobles
Comment by
nozzpack on Jan 05, 2022 9:28am
Translation of the Norwegian report quotes the CEO as saying that compensation is expected to be in the range of $0.28 cents to $0.56 cents per share. Roughly $105 million to $210 million . That would be low ball but still substantial for Questerre .
Comment by
mullatschak on Jan 05, 2022 10:35am
Ok thanks. I still have some QEC shares. So it could help a bit, but we all know, that QEC was at 5 CAD, and would be at 50 CAD today, if the government let us work... So it still is low ball, and if you take a look over the sea, seeing, that EU tells us, gas is an ecological power source, it is even more frustrating. But that's live.