Shore Capital Markets, which rates small-cap oiler Afentra (AIM:AET) as a Buy, sees big upside ahead of upcoming well results.
The broker's bullish call looks to the results of Afentra's first new wells on Block 3/05, which it calls the biggest test yet of management's multi-year growth plan for the company's core Angolan asset; Afentra produces oil from offshore blocks including 3/05, where net average production stood at 5,777 barrels of oil per day in the six months to 30 June.
Shore Cap pitches a 147p price target that implies some 144% upside, with a narrative arguing the Angolan oil producer's shares look cheap heading into a run of operational catalysts.
The broker suggests a positive run of well updates could significantly de-risk its price target. It hinges on the forward catalyst being the well results themselves, with the analyst framing them as the key near-term tests for the growth plan the target price is built on.
Afentra earlier this summer raised new equity on the back of its growth story.
