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Investing.com - Goldman Sachs has upgraded Amplitude Energy Ltd (ASX:AEL) from Neutral to Buy, setting a price target of AUD0.26 per share.
The new price target represents an 18% upside potential from current levels, according to the investment bank’s analysis released Wednesday.
Goldman Sachs cited Amplitude’s potential to grow EBITDA by over 90% during the next three years as a key factor in the upgrade decision, with stable Orbost production expected to be supported by the re-pricing of legacy gas contracts.
The investment bank also highlighted additional upside potential of up to 66% if various Otway Basin exploration wells prove successful.
Goldman Sachs described the current situation as "an attractive set-up" when considering both the company’s near-term growth trajectory and exploration opportunities.
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