Beach Energy stock downgraded by UBS on balanced risk outlook

Published 11/06/2025, 17:08
Beach Energy stock downgraded by UBS on balanced risk outlook

UBS downgraded Beach Energy Ltd (ASX:BPT) (OTC:BEPTF) from Buy to Neutral on Wednesday, while lowering its price target to AUD1.35 from AUD1.40, citing balanced upside and downside risks.

The research firm noted that Beach Energy stock has risen 10% since the company’s April 2025 quarterly report and is now trading at an implied oil price of $65 per barrel, aligning with UBS’s 2025-26 Brent forecast.

Beach Energy retains potential upside from higher domestic gas prices, but UBS has reduced its forecast for East coast gas prices by 5-6% for fiscal years 2026-27, influenced by reported delays to LNG import terminals and the Australian Energy Market Operator’s projection of weaker domestic gas demand over the next 2-3 years.

In Western Australia, fuel gas was introduced into the Waitsia Gas Plant in May 2025, supporting expectations for first sales gas beginning in July 2025, according to UBS.

The firm indicated that the risk of further commissioning delays at the Waitsia facility remains possible but is no longer reflected in Beach Energy’s current stock price.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.