Fresh from joining the FTSE 100, Ithaca Energy has been handed a "buy" tag by Shore Capital, which reckons the shares can climb another 20% to 340p.
Not a bad housewarming gift for the North Sea producer, which graduated to the blue-chip index on 21 September.
Analyst James Hosie's argument is refreshingly straightforward: Ithaca is the biggest listed player devoted purely to the UK Continental Shelf, pumping around 125,000 barrels of oil equivalent a day, and it does so cheaply.
Operating costs of roughly $18 a barrel sit comfortably below the basin average of about $24, which is the kind of gap that keeps the cash flowing even when prices wobble.
And cash is rather the point here.
Shore Capital pencils in a dividend yield of about 8.5%, underpinned by a policy of returning 20% to 35% of post-tax cash flow to shareholders.
The bigger prize is a friendlier UK energy policy.
Ithaca is sitting on five projects, holding more than 200 million barrels net, that could get the green light within two years if ministers stop dragging their feet.
Approval of the Rosebank field, where Ithaca owns 20%, is the one to watch, along with Chancellor John Healey's Budget on 28 October.
One quirk worth noting: with Israel's Delek and Italy's Eni holding the lion's share, only about 13.6% of the stock is actually in free float.
Shore Capital values Ithaca on its cash generation rather than the usual net asset sums, which is how it gets to 340p, well above the 205p its asset-based approach spits out.
