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Addax expected to generate robust reserve growth by the end of the current year

Addax Petroleum "buy," target price raised

Tuesday, November 14, 2006 8:56:19 AM ET
UBS

NEW YORK, November 14 (newratings.com) - Analyst Memet Kont of UBS maintains his "buy" rating on Addax Petroleum (ticker: AXC), while revising his estimates for the company. The target price has been raised from C$31 to C$36.

In a research note published this morning, the analyst mentions that the company has reported 3Q EPS in-line with the estimates. Addax Petroleum's production during the quarter was ahead of the estimates, the analyst says. Addax Petroleum is expected to generate robust organic reserve and NAV growth by the end of the current year and there is significant visibility into the company's growth until 2008, UBS adds. The EPS estimates for 2006 and 2007 have been raised from $1.86 to $1.93 and from $4.02 to $4.04, respectively. The EPS estimate for 2008 has been reduced from $4.31 to $3.78.