Is the Beach Energy share price a buy following its post-reporting sell-off?

The Beach Energy Ltd (ASX: BPT) share price plummeted 11% on Monday following the release of the company’s financial year 2022 earnings. The stock closed yesterday’s session at $1.645.

Unfortunately, brokers shared in the market’s disappointment over the company’s results.

But do experts tip a post-sell-off upside for the stock? Let’s take a look.

Does the Beach Energy share price still offer upside?

The Beach Energy share price plummeted yesterday after the company revealed its full-year production had slumped 15% in financial year 2022.

The company produced 21.8 million barrels of oil equivalents in the 12 months to 30 June. Though, its underlying net profit after tax (NPAT) jumped 39% to $504 million, while its underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) lifted 17% to $1.1 billion.

Both UBS and JP Morgan labelled the results “soft”, The Australian reported.

UBS was said to have been disappointed by the company’s second-half earnings, noting its guidance points to slower growth.

The broker dropped its price target for Beach Energy shares by 5 cents to $2 but retained its ‘buy’ rating.

JP Morgan was also reportedly disheartened by the company’s EBITDA. The measure was dinted by higher operating costs which have been tipped to increase in financial year 2023. It was also disappointed by the company’s guidance.

JP Morgan reportedly also has a $2 price target and an ‘accumulate’ rating on Beach Energy shares.

That means the brokers, however saddened by the company’s earnings, are tipping a 21.6% upside on its current levels.

Finally, brokers Morgans and Credit Suisse were reportedly surprised by the company’s lesser-than-expected outlook. Credit Suisse analyst Saul Kavonic was quoted by The Australian, saying:

Another re-setting of Beach outlook to the downside, signalling Beach has continued to provide targets that are optimistic rather than conservative across the portfolio.

The analyst was reportedly referring to the production downgrade announced by the company in April 2021.

The post Is the Beach Energy share price a buy following its post-reporting sell-off? appeared first on The Motley Fool Australia.

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• Beach Energy share price tumbles 9% as production slides

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Brooke Cooper 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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