Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) shares are underappreciated in the market, according to stockbroker Liberum, which has begun its coverage of the exploration company with a ‘buy’ recommendation.
“Helium One’s current share price performance does not fully reflect the work done to date by the company, in our view,” the broker said in a note.
Liberum’s ‘buy’ note comes with a 19p price target, suggesting substantial upside to the current share price of 9.9p.
“2021’s drilling campaign has de-risked the proposition, identified a working helium system, and confirmed the presence of an effective geological seal.”
The broker also noted that technical issues seen in last year’s Phase 1 drill programme related to rig performance and not the target geology, whilst highlighted that the next phase will use a conventional rig.
Pointing to broader enhancements, meanwhile, Liberum said: “The team has been strengthened, offering comprehensive geological analysis to enhance on-going exploration work and to identify commercial targets.”
Helium One appointed Liberum as its new nominated advisor earlier this week, on Monday.