First upgrade from Morgans...Recommendation : AddPrice target:...

First upgrade from Morgans...

Recommendation : Add

Price target: 48c

% to reach target: 45%

Senex Energy has been awarded preferred tenderer status on two new blocks in the Surat and Bowen Basins.The Surat acreage awarded is adjacent to the company’s flagship Atlas operation, boosting the acreage of the company’s highest value asset by 31%, calculates Morgans.The broker highlights this increases the ultimate earnings potential for the company, while also lifting future earnings quality. The company is considered a dependable developer of new gas supply on the east coast, helping it to secure new acreage.Morgans lifts EPS estimates for FY22 and FY23 by 4% and 14%, respectively.The Add rating is unchanged and the target price is increased to $0.48 from $0.424.