Australia-based oil and gas exploration and production company Karoon Energy Ltd has enjoyed strong performance similar to most of the Global Energy Sector i.e. KAR is up +29% in 2022. This $1.2bn business doesn’t yet pay a dividend but it does feel cheap trading on a P/E of 2.84x earnings for 2023 especially as it looks likely to remain FCF positive even at peak CAPEX, just as it did in 2022.
- We can see KAR breaking its $2.45 in the coming weeks/months but the risk-reward isn’t overly exciting around $2.20.
MM likes in KAR into pullbacks below $2
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