Romanian brokerage firm Swiss Capital, one of the biggest operating at the Bucharest Stock Exchange (BVB), revised its price target for the shares of the producer and supplier of natural gas Romgaz (SNG) to RON 46.5, thus implying a potential yield of 32.5% versus the market closing price of December 3.

The price rose by 4.4% during the next trading day on December 6, compressing the potential yield to a still significant 27%.

The evaluation does not include the impact of the Neptune Deep project in the Black Sea.

Romgaz is going to pay ExxonMobil just over $1bn for 50% in the Black Sea gas perimeter Neptun Deep - indirectly evaluated by Swiss Capital to have a significant RON3.74bn (EUR 0.75 bln) positive net impact on Romgaz market value.

"We are updating our view on Romgaz with a 'strong buy' recommendation and a price target (excluding Neptun Deep) of RON 46.5 per share. Including Neptun Deep, the price target would amount to RON 56.2 per share as we see the net present value of the project at USD 3.7 bln (EUR 3.3 bln)", Swiss Capital analysts said in a research note released on December 3, quoted by Ziarul Financiar.

The price differential between the shares' valuation with and without Neptun Deep project indicates a positive impact of RON 9.7 per share (26.5% of current market price), or RON3.74bn (EUR 0.75 bln) in terms of market capitalisation. Romgaz has a market capitalisation of RON 14.1 bln (EUR 2.8 bln). 

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andrei@romania-insider.com