North Sea firm Parkmead Group Plc (LON:PMG) is well positioned to build with an acquisition-led growth strategy whilst taking advantage of low asset valuations, so says broker Cantor Fitzgerald.
That said, Cantor analyst Sam Wahab also sees organic growth coming concurrent with any deals thanks to what he describes as a low cost portfolio with near-term cashflows. This portfolio is a “natural hedge” to low oil prices, he added.
With a 163p price target Cantor’s ‘buy’ recommendation sees more than 200% upside to Parkmead’s current price (of around 50p).
Cantor’s bullish write up comes at the end of a week which saw Parkmead expand its North Sea resource base by 39% through the acquisition of the Polecat and Marten oil fields.