Rh Petrogas

Rh Petrogas - No Co. specific news out today, although it could be a case of bargain hunting, after the recent sell down. Recall in Mid Oct, the counter surge ~10% on back of growing interest in RH Petrogas (RHP) after a local broker reiterated its Buy with a $1.33 TP, and another local broker initiated coverage on the stock with a Buy rating and $1.60 TP. This came in the wake of a 30% share price slump on news that Sona Petroleum will not be taking a stake in the oil and gas exploration company, with the resultant negative sentiment largely ignoring the group’s intrinsic value. Comparisons have been made between RHP and Kris Energy, with analysts believing that valuations for RHP should rerate towards that of Kris Energy given that both companies having similar contingent and probable reserves. Moreover, RHP already has producing or near producing assets, which are profitable. Following its recent share placement, liquidity on the counter is also expected to pick up, which could attract trading interest. Based on the street’s NPV and risk valuation, the group has a mean TP of $1.47.