Panmure Liberum says Serica Energy (AIM:SQZ) is a Buy with a 342p price target, the the bullish broker buoyed by the oil and gas firm's capital markets day.
Analyst Ashley Kelty pointed to Serica's enlarged North Sea portfolio as the basis for positivity, saying 2025's three acquisitions have added scale and depth to support organic growth, meanwhile, higher commodity prices and a large pool of tax losses reduce the impact of the UK’s regressive fiscal regime.
In a note, the broker points to YTD production averaging 43.3kboepd with second‑quarter output above 49kboepd, net debt down to $72m from $200m at end‑December, liquidity of $684m after a recent bond issue, and a capital allocation policy to return 15-30% of post‑tax free cash flow, noting guidance is unchanged.
A busy stack of near‑term catalysts were flagged by the broker. These include the expected securing of a rig for an infill well programme at Bruce field, and production uplifts from the Kyla redevelopment at the Triton Hub, as well as the Glendronach development and Tormore infill drilling at the GLA hub.
