AWE

Australian Resources Weekly provided by Australian market analyst UBS.

What are consensus estimates telling us?

Consensus estimates versus spot prices:

Bloomberg data suggests spot is lower than consensus estimates for lead (-25%), nickel (-23%) and zinc (-19%) and higher than consensus estimates for copper (5%) and oil (28%). The implication is that there could be downside risk to zinc, lead and nickel, if prices do not rise from current levels and hence a negative impact on the stocks exposed to these commodities.

An Australian stock analyst, Macquarie Research Equities have provided an update about the energy sector: Woodside Petroleum (WPL), Santos Oil (STO), Oil Search (OSH) and Australian Worldwide Exploration (AWE).

Energy Sector: The Australian Energy Sector

Australian Worldwide Exploration (AWE) have an Outperform recommendation on their stock from Macquarie Research, an Australian shares analyst.

Australian Worldwide Exploration (AWE) - Outperform

AWE has recently bounced off its 50% fibbonacci re-tracement level and given solid market fundamentals could be well placed to re-test its highs. The friendly approach to ARC Energy could be beneficial if accepted and could provide a further boost to AWE. Fundamentals behind this call are as follows;

Stock Chart Source: IRESS

Aspect Huntley have downgraded their rating for the Australian Worldwide Exploration (AWE) stock to Reduce from Hold. The downgrade in recommendation was based on a reduced valuation down by 8 percent to $2.30 as earnings estimates are lowered. While quarterly sales revenue for the company was a record, Aspect Huntley notes it was below expectations given a lower contribution from subsidiary BassGas.