Canaccord Genuity raises target price on Serica Energy.
Canaccord Genuity bumped up its target price on exploration and production company Serica Energy from 230p to 310p on Monday, stating the firm had a "cash harvest year ahead".
Source: Sharecast
Canaccord Genuity said that while Serica's 2025 news flow was dominated by Triton FPSO downtime issues, it had "navigated these headwinds effectively" and now stands in a "strong operational position" in 2026.
With Triton back online, the rest of the portfolio performing, and M&A bringing additional production throughout the year, Canaccord Genuity sees Serica having "a fruitful time ahead", especially with commodity prices at current levels.
"We see 2026 also being a very strong cash flow year, with a return to higher production, but lower capex commitments resulting in a significant uplift in FCF on our numbers yoy," said the Canadian bank, which reiterated its 'buy' rating on the stock.
Canaccord also updated its model for Serica's FY25 results, FY26 guidance, and implemented its new commodity price assumptions for its forecast period, resulting in a 36% increase in its risked NPV10 valuation.
Halifax is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.
