The Karoon Energy Ltd (ASX: KAR) share price has started the week with a whimper.
In late trade, the energy explorerâs shares are down slightly to $2.01.
Though, it is worth highlighting that the Karoon Energy share price is smashing the market on a 12-month basis.
During this time, the companyâs shares have risen a whopping 62%.
Where next for the Karoon Energy share price?
The good news for investors is that one broker believes the Karoon Energy share price gains are only getting started.
According to a note out of Barclay Pearce Capital, its analysts have put a buy rating and $3.49 price target on the companyâs shares.
Based on the current Karoon Energy share price of $2.01, this implies potential upside of 73% for investors over the next 12 months.
What did the broker say?
Barclay Pearce Capital has been busy reviewing the company’s results for FY 2022 and appears to have liked what it saw.
It highlights that the result was well ahead of the market’s expectations and suspects that more of the same could be coming in the future. The broker commented:
KAR reported FY22 underlying NPAT of US$89.6m (AUD$128.0m using an AUD/USD 0.70c conversion rate) which is 35% above market expectations of AUD$94.8m. Hence, we expect positive earnings revisions of 20% for FY23 and 10% for future periods.
All in all, it feels that this makes it great value at the current level. Its analysts conclude:
We are initiating coverage on KAR with a 12-month target price of $3.49 and with a BUY recommendation. The price target is underpinned by our valuation.
The post Broker tips this ASX 300 energy share to rocket 70% appeared first on The Motley Fool Australia.
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More reading
- Why Karoon Energy, Pilbara Minerals, PointsBet, and Whitehaven Coal are rising
- Why these 3 ASX shares could be in for a massive boost this month
- 3 ASX All Ords shares that leapt higher on FY22 results today
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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