Ithaca Energy (LON:ITH) Stock Rating Reaffirmed as “Buy” by Jefferies Financial Group
by Danessa Lincoln · The Markets DailyIthaca Energy (LON:ITH – Get Free Report)‘s stock had its “buy” rating reaffirmed by Jefferies Financial Group in a report issued on Tuesday, Digital Look reports. They presently have a GBX 350 price target on the stock. Jefferies Financial Group’s price target would indicate a potential upside of 23.70% from the stock’s current price.
Separately, Berenberg Bank reiterated a “buy” rating and set a GBX 270 price objective on shares of Ithaca Energy in a research note on Wednesday, August 19th. Two equities research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the company currently has an average rating of “Buy” and an average target price of GBX 310.
View Our Latest Stock Report on Ithaca Energy
Ithaca Energy Stock Performance
ITH stock opened at GBX 282.94 on Tuesday. Ithaca Energy has a fifty-two week low of GBX 149.80 and a fifty-two week high of GBX 298.60. The business’s 50-day moving average is GBX 267.07 and its two-hundred day moving average is GBX 253.14. The company has a market cap of £4.67 billion, a price-to-earnings ratio of 18.02 and a beta of 0.34.
Key Headlines Impacting Ithaca Energy
Here are the key news stories impacting Ithaca Energy this week:
- Positive Sentiment: Major Canadian acquisition: Ithaca agreed to acquire Suncor Energy’s stakes in several offshore oil projects off Newfoundland and Labrador for approximately $860 million upfront. Including additional consideration and related commitments, some reports value the transaction at roughly $1.1 billion. The assets provide producing and development interests that could materially expand Ithaca’s reserves, production and cash flow. Ithaca Energy Agrees $860 Million Acquisition of Suncor Canadian Offshore Assets
- Positive Sentiment: North American foothold: The deal diversifies Ithaca beyond the United Kingdom Continental Shelf and gives the company its first international operating platform. Management and industry coverage describe the transaction as transformational, with potential for operating synergies and longer-term production growth. Transformational Ithaca Energy deal to provide North American foothold
- Positive Sentiment: Analyst support: Jefferies reaffirmed its “buy” rating and assigned a GBX 350 price target, implying further upside from recent trading levels. Peel Hunt also reportedly backed the Canadian acquisition, helping reinforce investor confidence. Ithaca Energy Stock Rating Reaffirmed as Buy by Jefferies
- Neutral Sentiment: Potential portfolio shift: The Canadian transaction may reduce Ithaca’s focus on acquiring BP’s UK assets, but reports do not establish whether those discussions have ended. Investors will likely compare the Canadian assets’ returns with the company’s existing North Sea strategy. Ithaca May Be Cooling on BP Assets With Canada Deal
- Negative Sentiment: Capital and execution risk: The acquisition is large relative to Ithaca’s existing business and will require substantial funding. Higher leverage, integration demands, offshore operating risks and exposure to oil prices could limit the near-term benefit if production or cash-flow expectations are missed.
About Ithaca Energy
Ithaca Energy is a leading UK independent exploration and production company focused on the UK North Sea with a strong track record of material value creation. In recent years, the Company has been focused on growing its portfolio of assets through both organic investment programmes and acquisitions and has seen a period of significant M&A driven growth centred upon two transformational acquisitions.
Today, Ithaca Energy is one of the largest independent oil and gas companies in the United Kingdom Continental Shelf (the “UKCS”), with stakes in six of the ten largest fields in the UKCS and two of UKCS’s largest pre-development fields.