Berenberg raises target price on Kistos.

Analysts at Berenberg raised their target price on closed-ended investment company Kistos from 600.0p to 630.0p on Wednesday, stating its deal with Mime Petroleum was "more than just hand waving".

Kistos Holdings
26 April 2023 13:57:53

Source: Sharecast

Berenberg said Kistos' acquisition of Mime Petroleum had given it a stake in the Balder, Ringhorne, and Ringhorne Øst fields, offshore Norway - adding 24.0m barrels of oil equivalent of proven-plus-probable reserves and a further 30.0m mboe of contingent resources.

Overall, the German bank views the deal as accretive to Kistos and a further demonstration of the company's ability to creatively structure deals and grow the business.

"We incorporate the new assets, mark-to-market our H1 commodity prices, roll forward our NAV and make various other modelling changes – the net effect is a 5% increase in our price target to 630.0p," said Berenberg, which also reiterated its 'buy' rating on the stock.

"On our updated forecasts, Kistos is now trading on FY 2023/24 EV/EBITDA of 1.7x/2.0x, EV/DACF of 2.6x/2.3x and a FCF yield (pre-M&A) of -10%/2% respectively."

Reporting by Iain Gilbert at Sharecast.com

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