antares downgraded by hartleys

Antares downgraded

Monday, 8 July 2013

FINANCIAL services company Hartleys has lowered its “buy” recommendation to a “speculative buy” for Antares Energy.

Hartleys said a recent $US300 million letter of intent for Antares to sell its Permian Basin assets was a good reflection of the current value of the assets.

Due to a recent share price bounce Hartleys had downgraded Antares because the downside risk of realising value in the sale relied on the LOI progressing to a binding offer.

The Hartleys report set a 12-month price target of 80c per share, with shares currently sitting at 47c per share.

It cited a reduction in net cash available to Antares after the transaction but because the funds were likely to be reinvested, no tax would be payable.

Based on existing data Hartleys said the value of Southern Star, Northern Star and Big State was $A288 million.

http://www.energynewspremium.net/StoryView.asp?StoryID=798533036