Kelt Exploration: STA Research sets a Hold rating, $7.50 target

STA Research
by: STA Research

STA Research set the target on Kelt Exploration with a Hold rating and a $7.50 target on the company’s stock price.

Based on the Kelt Exploration Ltd stock forecasts from 6 analysts, the average analyst target price for Kelt Exploration Ltd is CAD 6.96 over the next 12 months. Kelt Exploration Ltd’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Kelt Exploration Ltd is Bearish, which is based on 3 positive signals and 9 negative signals. At the last closing, Kelt Exploration Ltd’s stock price was CAD 5.68. Kelt Exploration Ltd’s stock price has changed by +0.17% over the past week, +0.00% over the past month and +100.00% over the last year.

What we like:

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector

 

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