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- Shares of InterOil Corporation (USA) IOC have declined 40.97 percent over the past six months, falling to a low of $22.37 on January 20.
- Mark Wiseman of Goldman Sachs has upgraded the rating on the company from Neutral to Buy, while lowering the price target to $37.50.
- Wiseman believes that there could be 68 percent upside potential to the stock and that the current valuation appears “too cheap to ignore,” especially given InterOil’s strategic position in PNG gas.
According to the Goldman Sachs report, “Recent field drilling results were favorable and should support a sizable resource certification payment mid-2016.”
Analyst Mark Wiseman believes that a key task for the company would be commercializing its 36.5 percent state in the PNG Elk-Antelope gas field.
Among the various catalysts for the stock, Wiseman mentioned the appraisal drilling at Antelope during 1Q2016, where InterOil is drilling at Antelope-6, “which should provide more data on structure and reservoir in the Eastern side of the Elk-Antelope gas field.”
The certification payments during 3Q16 are estimated at $15 million, based on the certified resource of 7.5Tcf.
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Posted In: Analyst ColorLong IdeasUpgradesPrice TargetCommoditiesMarketsAnalyst RatingsTrading IdeasGoldman SachsMark Wiseman
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