Berenberg raises target price on Kistos

Analysts at Berenberg raised their target price on closed-ended investment company Kistos from 600.0p to 630.0p on Wednesday, stating its deal with Mime Petroleum was "more than just hand waving".

Berenberg said Kistos' acquisition of Mime Petroleum had given it a stake in the Balder, Ringhorne, and Ringhorne Øst fields, offshore Norway - adding 24.0m barrels of oil equivalent of proven-plus-probable reserves and a further 30.0m mboe of contingent resources.

Overall, the German bank views the deal as accretive to Kistos and a further demonstration of the company's ability to creatively structure deals and grow the business.

"We incorporate the new assets, mark-to-market our H1 commodity prices, roll forward our NAV and make various other modelling changes – the net effect is a 5% increase in our price target to 630.0p," said Berenberg, which also reiterated its 'buy' rating on the stock.

"On our updated forecasts, Kistos is now trading on FY 2023/24 EV/EBITDA of 1.7x/2.0x, EV/DACF of 2.6x/2.3x and a FCF yield (pre-M&A) of -10%/2% respectively."

Reporting by Iain Gilbert at Sharecast.com