Karoon Energy Ltd's stock soared 7.54% during intraday trading on Monday, reflecting strong investor interest in the Australian energy producer.
The surge follows a positive analysis from Morgan Stanley, which expects consensus earnings per share forecasts for Australian oil and natural gas producers to rise significantly in the coming weeks. According to the investment bank, Karoon Energy is benefiting from uncertainty in physical supply chains caused by the Iran conflict, creating favorable conditions for the company.
Morgan Stanley analysts project 2026 EPS upgrades of 30-45% for companies like Karoon and view potential additional gas windfall tax burdens as manageable. The bank has named Karoon Energy as one of its top picks in the Australian upstream energy sector alongside Santos.