Berenberg raises Harbour Energy stock price target to GBP2.20 on strong H1

Published 12/08/2025, 12:52
Berenberg raises Harbour Energy stock price target to GBP2.20 on strong H1

Investing.com - Berenberg has raised its price target on Harbour Energy PLC (LON:HBR) to GBP2.20 from GBP2.00 while maintaining a Hold rating following the company’s strong first-half performance.

The research firm cited Harbour Energy’s H1 results released on August 7, which showed robust production and cash flow during the period. The energy company also slightly increased its full-year guidance and announced a $100 million share buyback program.

Berenberg has increased its 2025 and 2026 EBITDA forecasts by 6% and 5% respectively, with free cash flow projections up 23% and 8% for those years. The adjustments reflect updated near-term guidance and the company’s hedging profile.

Despite the positive near-term outlook, Berenberg continues to anticipate cash-flow declines in the longer term, driven by lower production, expectations for reduced European gas prices, and portfolio tax effects.

On Berenberg’s updated forecasts, Harbour Energy is trading at a 2026 EV/EBITDA of 2.2x, an EV/DACF of 4.7x, with a free cash flow yield of 20% and an underlying dividend yield of 10%.

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