Pareto Reiterates Buy Rating for InterOil
In a quarterly review published earlier today, Pareto Securities reiterated its Buy rating for InterOil Corporation (NYSE: IOC), but did not name a price target.
Pareto went on to say “Interoil reported strong Q1'12 results with EBITDA of USD 32m, or USD 23m adjusted for one-offs vs. our estimate USD 19m. The background is higher revenues both in Colombia and Peru, driven by overlift (sale of oil from inventory). The company continues to repay debt at a fast pace, and net debt at the end of Q1 was USD 67m, down from USD 76m at YE11. JV negotiations with Petroperu for the Peru licenses are continuing in good faith, but the parties have agreed to full confidentiality regarding the process. We estimate the value potential of such a deal could be up to NOK 20-30/share, dependent on terms, none of which is reflected in the current share price.”
InterOil Corporation closed yesterday at $57.93.
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