TSX runs higher on rate cut expectations
Investing.com - RBC Capital has lowered its price target on Tamboran Resources Corporation (NYSE:TBN) to $30.00 from $31.00 while maintaining a Sector Perform rating on the stock. The adjustment comes as the company’s shares have declined 24% over the past year, with a particularly sharp 9.2% drop in the past week. According to InvestingPro data, analyst targets for the stock currently range from $29 to $53.
The firm expects limited market reaction to Tamboran’s upcoming fiscal fourth-quarter 2025 earnings report, which is scheduled for September. Instead, RBC Capital suggests investors will focus on other near-term catalysts.
Management plans to release IP60 and IP90 production data from the company’s first "modern" completion well (SS-2H) within the next 45 days. Tamboran is also preparing to spud its next three wells soon.
RBC Capital identified several key topics currently dominating investor discussions about Tamboran. These include production performance from initial long lateral wells, regulatory challenges, future funding requirements, pipeline cost and timing considerations, and risks associated with the company’s LNG strategy.
Trading liquidity for Tamboran shares remains another significant concern for investors, according to the research firm’s analysis.
In other recent news, Tamboran Resources Corp has reported significant developments in its Q1 2025 earnings call. The company successfully raised $70 million, boosting its cash reserves to $96 million, which will support its drilling activities planned for the latter half of 2025. Tamboran is set to drill three new wells and aims to reduce drilling costs from $28 million to $16 million per well. The company is also targeting the completion of these wells by the end of 2025, with initial gas production expected by mid-2026. Additionally, Tamboran has initiated a farm-out process for a 400,000-acre block, with RBC Capital Markets leading the effort. The company is exploring opportunities to supply gas to data centers, potentially enhancing its revenue streams. Furthermore, Tamboran’s strategic partner, Formentera, has committed $10 million, contributing to the company’s robust financial position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.