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Cairn Energy ShareCast News (CNE)
ShareCast News for Cairn Energy (CNE)
| Share Price: 286.50 | Bid: 286.50 | Ask: 286.80 | Change: 0.00 (0.00%) |  | ||||||
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Broker snap: Cairn's firepower for more acquisitons limited
Thu, 14th Jun 2012 17:44
Credit Suisse reacted to Cairn Energy's agreed bid for Nautical Petroleum by cutting its target price for the Scottish oil behemoth.
The $642m deal provides more visibility to Cairn's growth strategy in the North Sea, and looks fairly valued on risked valuation grounds in Credit Suisse's view.
"We maintain our Neutral rating on Cairn Energy and reduce our target price to 362p from 400p to account for the acquisition and current mark-to-market of its Cairn India stake," the broker said.
The Swiss bank says Cairn's balance sheet is strong, at least in theory, with the option of raising around $2.2bn from the sale of its residual stake in Cairn India. "However, the timing of the disposal of the stake is uncertain and this is an important factor if oil prices correct further and equity valuations de-rate. Until we have clarity on the timing of disposal, we expect Cairn to have limited financial flexibility to make further meaningful corporate acquisitions that can unlock value," said Ritesh Gaggar, an oil and gas analyst at Credit Suisse.
JH
The $642m deal provides more visibility to Cairn's growth strategy in the North Sea, and looks fairly valued on risked valuation grounds in Credit Suisse's view.
"We maintain our Neutral rating on Cairn Energy and reduce our target price to 362p from 400p to account for the acquisition and current mark-to-market of its Cairn India stake," the broker said.
The Swiss bank says Cairn's balance sheet is strong, at least in theory, with the option of raising around $2.2bn from the sale of its residual stake in Cairn India. "However, the timing of the disposal of the stake is uncertain and this is an important factor if oil prices correct further and equity valuations de-rate. Until we have clarity on the timing of disposal, we expect Cairn to have limited financial flexibility to make further meaningful corporate acquisitions that can unlock value," said Ritesh Gaggar, an oil and gas analyst at Credit Suisse.
JH
Cairn Energy plans exploration in Morocco
Cairn Energy has confirmed planning is underway for its first the first well in its exploration programme offshore Morocco.[Thu 09:57]
Further opportunities added to Cairn's frontier drilling programme
FTSE 250-listed Cairn Energy has reported a farm-in as operator to two licences offshore West of Ireland in the Porcupine Basin and six adjacent licensing option blocks.[7 May '13]
Tuesday broker round-up UPDATE
Admiral Group: JP Morgan reduces target price from 1246p to 1108p downgrading to underweight.[7 May '13]
London midday: Chinese slowdown sinks miners and commodity prices
A sell-off in the mining sector pulled the FTSE 100 over one per cent lower on Monday morning as disappointing growth figures from China and downgraded gold-price targets weighed on markets.[15 Apr '13]
London open: Miners hammered after Chinese slowdown
Mining stocks were registering sharp falls on Monday morning as a surprise slowdown in Chinese economic growth weighed on the outlook for commodities demand.[15 Apr '13]
London pre-open: FTSE to edge slightly lower ahead of busy week
City sources predict the FTSE 100 will open down two points from Friday's close of 6,384, as traders brace themselves for another busy week, nationally and internationally. The week has begun on a less than positive note with China announcing less than impressive figures for both production and economic growth.[15 Apr '13]
Cairn secures contract for Cajun Express drilling rig
Cairn Energy, the FTSE 250 oil and gas group, has secured a long term contract with Transocean for the Cajun Express drilling unit.[15 Apr '13]
Cairn Energy shares rise on Skarfjell well upgrade
Cairn Energy's shares advanced Tuesday as the oil and gas company upgraded its resources at the Skarfjell appraisal well in the Norwegian North Sea.[9 Apr '13]
