** Analysts at Morningstar are optimistic on the Australian oil and gas firm Beach Energy BPT.AX, calling it undervalued

** Investment research firm gives fair value estimate of A$2.55 per share, compared to the stock's last closing price of A$1.22 per share

** The company reported a fiscal 2025 production of 4.9 million barrels of oil equivalent per day (MMboe), up from 4.5 MMboe a year ago

** Co's Waitsia Stage 2 project progressed through final commissioning phase with first gas sales targeted for mid-2025

** Morningstar says co "is well-placed to build upon Waitsia's imminent cash flows"

** Adds, its fair value estimate assumes a five-year EBITDA compound annual growth rate of 8% to $885 million

** Three of 15 analysts rate the stock "buy", seven "hold" and five "sell" or lower; their median PT is A$1.38 — LSEG data

** Stock down 12.5% YTD, as of last close

(Reporting by Adwitiya Srivastava in Bengaluru)

((Adwitiya.Srivastava@thomsonreuters.com))