Reconnaissance Energy Africa Ltd (RECO:TSV) STA Research assigns a Underperform rating

STA Research assigns a Underperform rating on Reconnaissance Energy Africa Ltd  with a $2.50, 12 month target price on the stock.

Based on the Reconnaissance Energy Africa Ltd stock (reco stock price) forecasts from 2 analysts, the average analyst target price for Reconnaissance Energy Africa Ltd (reco stock price) is $9.25 over the next 12 months. Reconnaissance Energy Africa Ltd.’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of Reconnaissance Energy Africa Ltd (reco stock price) is Bearish, which is based on 1 positive signals and 3 negative signals. At the last closing, Reconnaissance Energy Africa Ltd.’s stock price was CAD 4.90. Reconnaissance Energy Africa Ltd.’s stock price has changed by -0.76% over the past week, -0.10% over the past month and -59.00% over the last year.

As a junior oil and gas company, Reconnaissance Energy Africa Ltd. (reco stock price) is involved in the discovery, exploration, and development of oil and/or gas assets in the countries of Namibia and Botswana. It holds a 90 percent interest in a petroleum exploration licence that covers an area that is approximately 25,341.33 km2 and is located in Namibia. Additionally, it holds a 100 percent working interest in a petroleum licence that covers an area that is approximately 9,921 km2 and is located in the northwestern part of Botswana. The headquarters of the corporation can be found in Vancouver in Canada. Address: PO Box 48326 BENTALL, Vancouver, BC, Canada, V7X 1A1

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

 

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to book value

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

Negative cashflow

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