Chariot Ltd (AIM:CHAR, OTC:OIGLF) was reaffirmed as a buy stock from Panmure Liberum on Monday with an adjusted price target of 32p from the previous 39 pence.
This revision reflects the dilution following Chariot's recent $9 million fundraising rounds through a placing and open offer.
Despite the reduced target, Panmure Liberum remains optimistic about Chariot's prospects, particularly in its Moroccan gas assets.
The brokerage highlighted the strong potential of the Anchois project within Chariot's portfolio, suggesting that current market pricing underestimates the project's value.
The Anchois development, critical to Chariot’s strategy, is seen as offering significant upside if successfully executed, although Panmure cautions about possible delays and cost overruns.
"We believe the project will be delivered but would not be surprised at project delays and cost-overruns. Despite this, we feel the discount borne by Chariot looks excessive, and we believe that the shares look attractive for investors looking for exposure to the Moroccan gas markets," Panmure Liberum stated.