Carnarvon Energy (ASX:CVN) is currently trading around cash-backing, and represents a "compelling buying opportunity" for "patient and value-based" investors, said Euroz Hartleys in a Tuesday note.
Due to a delay in its Dorado oil project and lack of new projects, the company has proposed to return up to AU$125 million to shareholders, or AU$0.07 per share, to shareholders, pending a tax ruling from the Australian Taxation Office.
The research firm said the company's current share price does not reflect the $90 million development capital expenditure carry, the discovered oil resources in two projects, or its significant exploration portfolio.
Euroz Hartleys maintained its buy rating and price target of AU$0.18.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.