Beach Energy (BPT) is a $3 billion oil and gas exploration company operating across Australia and New Zealand.
“The balance sheet is strong, but the market hasn’t been very happy with some of their recent updates, such as production delays and higher costs,” Michael said.
“However, the shares appear to have bottomed out now on the chart and we can see some buying emerge down at these levels.
“We see oil prices remaining stronger than what the consensus is pricing in, and this could be a tailwind for the stock.
“In terms of the chart, since mid-March, the overall trading range for BPT had been tightening up, and the shares had been hugging the upper part of the range, which was a positive.
“The last few days has seen the stock break above resistance on good volumes.
“Current levels are a buying opportunity, and we can see about 20% upside in the next few months before the stock hits any major resistance levels,” Michael said.
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