Genel Energy PLC (LSE:GENL, OTC:GEGYY) has had its buy rating maintained by Jefferies after what the US bank says was a “robust” first-quarter update.
"Local demand is staying strong", with the outlook for 2024 unchanged, and Genel expects to "maintain net cash above $100 million throughout 2024", Jefferies added
Talks continue between stakeholders on the Iraq-Türkiye pipeline, but the "timing on of the resumption of exports remains uncertain", hence the real benefit from the development of local sales as the main income stream helping to preserve the balance sheet.
“The main 2024 catalysts remain the resumption of pipeline exports, clarity on the recovery of $107m of KRG receivables, potential M&A and a successful Miran & Bina Bawi arbitration result.”
Jefferies has a target price of 100p against a market price of 89p.