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Stockbroker eyes ADM Energy PLC upside ahead of Aje and Barracuda programmes

Arden has repeated a ‘buy’ recommendation for  () following Thursday’s news that the company realised a profit on a renewable energy investment.

With a price target of 14p the stockbroker sees some 324% upside, to the current price of 3.3p, as the company advances the Aje field and Barracuda project in Nigeria. The cash injection supports those growth projects which are due to ramp up in the coming months.

ADM, in a statement on Thursday, said it had received £849,501 from the sale of shares in Superdielectrics Ltd, realising a profit of around £656,000 on its original investment.

“We are delighted to complete this successful transaction with an excellent return on our investment,” said ADM chief executive Osamede Okhomina.

“The proceeds of the sale, together with our recent fundraise, will be used to support our growth strategy as we advance our current assets at Aje and the Barracuda Field, while continuing to identify and pursue new projects that can bring value to the company.”

As a result of the transaction, Arden reduced its net debt forecast for the end of 2021.

Analyst Daniel Slater, meanwhile, said: “we look for firming up of the Barracuda and Aje work programmes and the CAPEX funding for these, alongside the potential for further acquisitions.

“In anticipation of work programmes coming through and providing operational news flow, we have a buy recommendation and 14p price target.”

Read More: Stockbroker eyes ADM Energy PLC upside ahead of Aje and Barracuda programmes

2021-05-20 05:43:00

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