Oil-price recovery to increase Harbour’s appeal to new investors8 Apr 2021 23:26
First Published: April 8, 2021 at 4:06 p.m. ET
Here’s what to know as Harbour Energy becomes London’s top independent oil-and-gas group.
“Harbour will likely become one of the ‘go to’ names for many investors looking to increase their sector weight,” U.K. brokerage Peel Hunt said in a recent note.
Oil-price recovery to increase Harbour’s appeal
With oil prices now bouncing back from last year’s lows, shares in companies such as Harbour Energy look increasingly appealing to investors.
Peel Hunt on Tuesday raised its recommendation for Harbour to hold from reduce, following an upward revision of its own oil price assumptions to $60 a barrel. The brokerage’s analysts now expect Harbour will deliver earnings before interest, taxes, depreciation, amortization and exploration of $2.25 billion in 2021 and $2.26 billion in 2022.
Analysts highlight Harbour’s cash flow generation capacity as one of its key strengths. The oil-price recovery only reinforces this view.
Barclays analyst James Hosie estimates Harbour can generate $1.1 billion of free cash flow in 2022. “Harbour Energy will provide U.K. investors with a new E&P stock with the scale, breadth and balance sheet needed to be an attractive investment proposition in what remains a structurally challenged energy sub-sector,” he said in a recent note.
Read the entire article here:
https://www.marketwatch.com/story/heres-what-to-know-as-harbour-energy-becomes-londons-top-independent-oil-and-gas-group-11617887743