Risk factor
Weak & very vulnerable to price shocks
Profitability factor
Weak margins and returns
About
Serica Energy plc operates as an upstream oil and gas enterprise, dedicated to the discovery, procurement, appraisal, and production of hydrocarbon reserves. The company boasts full ownership of the Keith oil fields, a 98% stake in the Bruce gas fields, and a 50% interest in the Rhum gas fields, all situated in the Northern North Sea. In addition, it maintains an 18% non-operating share in the Erskine field, located in the Central North Sea. Serica is also responsible for operating the Columbus development, along with the Skerryvore and Ruvaal prospects, which are also found in the Central North Sea. Its operational footprint extends to the North and South Eigg exploration prospects in the Northern North Sea. Serica Energy plc was established in 2004 and bases its headquarters in Aberdeen, United Kingdom.
Company Valuation
Based on key historical and expected multiples, the stock is slightly undervalued relative to its peers. In particular, the stock is reasonably priced on P/E, 'cheap' on
Target Price
The average target price of SQZ.L is 322 and suggests 24.6% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to incr