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BofA Raises Ithaca Energy Price Objective, Forecasts After FY26 Dividend Guidance Upgrade

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BofA Global Research bumped up its price objective for Ithaca Energy (ITH.L) to 2.85 pounds sterling from 2.75 pounds, reflecting the oil and gas exploration and production company's second-quarter results and upgraded full-year 2026 dividend guidance.

"Despite the increase in guidance, we feel there is yet further scope for upside to the updated range and hence our (updated) FY dividend now stands at $550m - still [over] 10% above VA consensus and 7% above the midpoint of guidance," analysts said Thursday. "We highlight the following combination of factors as supportive of a higher-for-longer dividend: (1) higher production from organic growth projects, (2) a cashflow-linked payout policy, and (3) a payout-conducive ownership structure."

Ithaca's update on future projects and extension of its hedge book into 2028 were also taken into account, with the research firm noting that the new price objective implies a "rare" absolute upside to share prices in the European exploration and production sector.

BofA also raised its EPS and cash flow estimates over the 2026 to 2028 period. The buy rating on the stock was maintained.

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