Trinity Exploration & Production PLC (LON:TRIN) shares offer investors exposure to a high-margin, cash-generative story with a considerable upside, according to stockbroker Cantor Fitzgerald.
The broker repeated a ‘buy’ recommendation and increased its price target to 38p from 37p for the Trinidad-focused oil producer following the release of half-year results last week.
READ: Trinity reveals positive financials as attention turns back to growth
Analyst Sam Wahab said in a note that: “The company has undertaken a significant review of its portfolio, completing a considerable amount of remedial work to existing wells.
“As a result, the company is currently producing in excess of 2,600 bopd at compelling and robust economics.”
READ: Trinity Exploration sells west coast Trinidad assets to Range Resources
He added: “We are also encouraged by the company’s prudent approach to capital discipline, allocating funds to production and development assets to generate material cash flows and compelling economic returns, focusing on extracting value from the ‘low hanging fruit’ in its portfolio.”