The Beach Energy Ltd (ASX: BPT) share price could have major upside for investors buying in at current levels.
That's the view of analysts at Bell Potter, which remain very bullish on the investment opportunity here with this ASX 200 energy share.
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Where could this ASX 200 energy share be heading?
According to the note, Bell Potter has retained its buy rating on the company's shares with an ever so slightly trimmed price target of $2.18 (previously $2.21).
So, with the Beach Energy share price currently changing hands for $1.51, this implies potential upside of 44% for investors over the next 12 months.
In addition, the broker is forecasting fully franked dividends per share of 4 cents in FY 2023 and then 7 cents in FY 2024. This equates to yields of 2.65% and 4.6%, respectively.
Why is Bell Potter bullish on Beach?
There are a few reasons why Bell Potter is bullish on this ASX 200 energy share.
This includes its strong production growth potential, its diverse operations, an improving free cash flow outlook, and its overall positive view on the Australian east coast gas and LNG markets.
The broker explains:
BPT has a strong, fully funded production growth outlook, diversified across five energy basins and across four separate gas markets, including LNG. BPT is rolling-off peak capex into a step-change in production and free cash flow in FY24, has a strong balance sheet, and has a capital management framework with franked dividends a key component. With a positive view on Australian east coast gas and LNG markets, and BPT's strong earnings growth outlook, we maintain a Buy recommendation.
All in all, Bell Potter appears to see this as a great ASX 200 share to buy if you're looking for exposure to the energy sector.
