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Seplat Energy Fair Value Estimate Rises to £6.86 After Analyst Target Increase
Seplat Energy's fair value estimate has been raised from £6.35 to £6.86, an increase of about 8%, following updated analyst assumptions. Citi reaffirmed its Buy rating and lifted its price target to £6.65 from £6.55, citing confidence in the company's earnings profile. The revised fair value reflects adjustments including forecast revenue growth moving from 2.86% to 3.20%, projected net profit margin edging down from 9.21% to 9.12%, and the assumed forward P/E multiple jumping from 22.3 times to 30.8 times, while the discount rate increased from 13.30% to 13.48%. The limited breadth of recent published coverage, with Citi as the key referenced broker, may leave some investors cautious about relying on a single firm's view.