Harbour Energy to Get Cash Boost from European Gas Exposure
Dow Jones
Yesterday
0941 GMT - Harbour Energy's exposure to European gas prices will turbocharge free cash flow generation, BofA analyst Cian Evans-Cowie writes as he upgrades the stock to buy from neutral with a new target price of 350 pence, from 280 pence. Shares have lagged peers despite having the highest free cash flow sensitivity to European gas prices, he says. Harbour's free cash flow for 2026 could be around $2.65 billion, which implies a more than 45% upside to the company's guidance, he says. This cash can be used to pay down net debt, which is seen falling more than 30% by end of 2026, he adds. This will then free up more cash to return to shareholders, he says. Shares rise 2% to 277.00 pence.
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