Amplitude Energy (ASX:AEL) stands to gain from a recent 45% surge in Victoria's winter spot gas prices, which have risen above AU$13 per gigajoule (GJ), with forecasts hitting AU$17.44 per GJ, according to a Wednesday note by Euroz Hartleys.
The spike follows a coal plant outage and low renewable output, boosting demand for gas-fired power electricity generation, the investment firm said.
The company's Orbost gas processing plant, producing 85% of its output, is running near capacity, positioning the company to benefit from higher prices, Euroz Hartleys added.
The investment firm said that the company is a "high conviction" buy at the current share price, which has not yet digested the delivered certainty of the company.
The firm also noted that the forecast short East Coast domestic gas market should continue to support AEL's growth.
Euroz Hartleys maintained Amplitude's buy rating but raised its price target to AU$0.37 from AU$0.36.
Shares of the company rose almost 6% in recent Thursday trade.
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