RE:WH Ireland updated target price - raised to 60.6 pence
WH Ireland upgrade their target price to 60.6p
This was the conclusion of their updated note :
Source : WH Ireland note 14th June 22
.................Conclusion: We believe that i3 Energy's forward-looking outlook is, by far, the best it has ever been. We believe that the company's Canadian outlook is underpinned by low-risk drilling. The commodity outlook is robust. We expect the oil & gas sector to be re-rated. We expect i3 Energy to emerge as a premium company amongst its Canadian peers. Our high-conviction expectation is that i3 Energy's forward-looking value creation will exceed the company's impressive backward-looking (delivered) value creation.
The company is delivering on its promise to grow its dividend, which is now (after the increase announced 11 May 2022) paying out monthly at an annual rate of 1.71p (currently yielding 5.9%; 0.1425p/month x 12 months). The forthcoming appraisal well for the Serenity discovery has scope to add very significant value (see Table 2).
Following two increases to our fair value estimate in April, we find ourselves again increasing our fair value estimate for i3 Energy.
With commodity prices racing ahead of the assumptions we have used to value i3 Energy, and with an inevitable shift of focus on 2023, we believe that our near-constant refrain on i3 Energy remains pertinent: Expect more cash! .......................