It is rated as a ‘buy’ with a price target of 140p per share.
(), as a dividend payer that’s imminently headed for the FTSE 250, will be the subject of increasing investor interest.
That’s the view of stockbroker Mirabaud Securities which today repeated a ‘buy’ recommendation, with an improved price target of 140p (from 135p).
It has been a busy time for DGOC after it stepped up from AIM to London’s Main Market, closed to asset acquisitions and is now set for inclusion in the FTSE 250 index.
READ: DGOC closes second asset acquisition
“The fact so much has been achieved during a period of unprecedented volatility in financial & commodity markets is demonstrative of the resilience of the business model and stability of the underlying cash flows,” Mirabaud analyst Tim Hurst-Brown said in a note.
“In a world where dependable income affords a scarcity premium, we believe that DGOC’s dividend credentials (11.3% CY21 yield) will drive increasing interest in the stock, alongside the Main Board move and FTSE250 membership.”
On Wednesday, DGOC announced the completion of its second recent asset acquisition – picking up 6,100 wells from for US$110mln.
Before that, on Tuesday, it completed a separate but similar acquisition of assets from for US$112mln, bringing in 9,000 boe per day of production from 900 wells.
