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(Sharecast News) - Canaccord Genuity bumped up its target price on exploration and production company Serica Energy from 230p to 310p on Monday, stating the firm had a "cash harvest year ahead".
Canaccord Genuity said that while Serica's 2025 news flow was dominated by Triton FPSO downtime issues, it had "navigated these headwinds effectively" and now stands in a "strong operational position" in 2026.
With Triton back online, the rest of the portfolio performing, and M&A bringing additional production throughout the year, Canaccord Genuity sees Serica having "a fruitful time ahead", especially with commodity prices at current levels.
"We see 2026 also being a very strong cash flow year, with a return to higher production, but lower capex commitments resulting in a significant uplift in FCF on our numbers yoy," said the Canadian bank, which reiterated its 'buy' rating on the stock.
Canaccord also updated its model for Serica's FY25 results, FY26 guidance, and implemented its new commodity price assumptions for its forecast period, resulting in a 36% increase in its risked NPV10 valuation.
Reporting by Iain Gilbert at Sharecast.com
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