ANALYSTS at Patersons have placed a "strong buy" on coal seam gas (CSG) play LNG Ltd after the stock's pullback from its recent run.
LNG was today trading at $1.32 in intraday trade after reaching a high of $1.95 in September.
The analysts said achievement of the remaining key milestones to reach the final investment decision (FID) for its Fisherman’s Landing LNG development at Gladstone would provide “strong price catalysts” for the stock.
Perth-based LNG is working on final state and federal development approvals for the project, with FID expected later this year or early 2010.
The analysts noted that LNG was small compared to competitors but had strong management and would be expanding as their competitors reached their initial production phase.
LNG is targeting first production in 2012.
They also said the company was well placed after its recently completed share issue took its cash position to about $55 million.
Patersons maintained its 12-month price target of $1.95.
LNG Price at posting:
$1.32 Sentiment: LT Buy Disclosure: Held
