If you're looking to supercharge your returns, then there are a couple of ASX energy shares that analysts believe could do this.
Here's what analysts are saying about these energy shares:
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Beach Energy Ltd (ASX: BPT)
The team at Bell Potter reckons that Beach Energy is an ASX energy share to buy right now.
The broker is positive on Beach Energy due to its diversification and positive free cash flow outlook. The latter is due to expectations that its capital expenditure has now peaked. It 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.
Bell Potter has a buy rating and $2.18 price target on its shares. Based on the current Beach Energy share price of $1.42, this suggests potential upside of 53% for investors over the next 12 months.
Karoon Energy Ltd (ASX: KAR)
Morgans is very positive on this ASX energy share. So much so, it has the company on its best ideas list this month with a valuation significantly higher than current levels.
It likes Karoon Energy due to its production growth and strong balance sheet. The broker commented:
Unique as a reasonable scale pure conventional oil producer, benefitting directly from rising oil prices. Karoon has significant net cash and is fully funded through a doubling of production over the next 12 months. There are also potential catalysts just around the corner with Karoon flagging at its recent result that it plans to shortly update the market with more detail on its growth plans, Bauna's outlook, and its ESG approach.
Morgans has an add rating and $3.65 price target on the ASX energy share. Based on its current share price of $2.01, this implies potential upside of 81% for investors.
