Beach Energy shares dip after Macquarie downgrade
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The news: Beach Energy shares fell in morning trade after Macquarie analysts downgraded the stock and expressed surprise that the market “hasn’t reacted more negatively following FY25 results and reserves report” released last week.
The numbers: At 11:38am AEST, shares in Beach Energy had slipped 4.9% to $1.26.
Macquarie analysts cut their target price by 30% to 95 cents each and lowered their rating from 'neutral' to 'underperform'.
The context: Last week, Beach Energy reported “disappointing” FY26 production guidance of 19.7 to 22 million barrels of oil equivalent, as characterised by in a Macquarie research note.
The analysts also flagged that while the final dividend of 6 cents per share was a “positive surprise” they do not think it is sustainable “given negative [free cash flow] in FY26”.
Guidance also “points to a weaker outlook, and we see Beach Energy having less operational control over its valuation than it has historically”, given that 60%-65% of value is in non-operated assets.
The source: Macquarie research
