2252 GMT - Empire Oil & Gas's (EGO.AU) shares have been swept along with falling oil prices, which creates an opportunity for investors, Morgans says. The brokerage notes Empire's operations had a strong 2Q, with natural gas sales above expectations and revenue flat despite declining Brent crude and lower Western Australia spot gas prices. With oil-linked pricing contributing less than 20% of Empire's revenue, Morgans reckons the selloff in its shares has been overdone. Along with the potential to bring in partners on assets and a debt refinancing, it prompts Morgans to maintain an add call on the stock even as its target falls to A$0.67 from A$0.84. The stock was last at A$0.375. ([email protected]; @RobbMStewart)
EGO Price at posting:
37.5¢ Sentiment: Hold Disclosure: Held
