Africa Oil Receives a Buy from TD Securities

By Austin Angelo

The Materials sector company, Africa Oil (TSX: AOI), has received a rating update from a Wall Street analyst on May 17. On May 17, analyst Shahin Amini gave a Buy rating to AOI and set a C$3.50 price target.

Amini commented:

“We had assumed, based on the Etom-2 oil discovery (announced December 2015) and management guidance on surface extension of the structures, a recoverable resource range (field gross) of 70-100 mmbbl with a 65% geological chance of success (GCoS).”

According to TipRanks.com, Amini is ranked #3049 out of 4560 analysts.

Currently, the analyst consensus on Africa Oil is Strong Buy and the average price target is C$3.08, representing a 43.3% upside.

In a report issued on May 12, GMP FirstEnergy also reiterated a Buy rating on the stock with a C$2.80 price target.

Africa Oil’s market cap is currently C$981.7M and has a P/E ratio of 0.

Africa Oil Corp. is an oil and gas exploration company based in Canada. It have assets in Kenya, Ethiopia, and Mali, as well as Puntland (Somalia) through its equity interest in Horn Petroleum Corp. The company was founded on March 29, 1983 and is headquartered in Vancouver, Canada.

The company’s shares closed last Thursday at $2.15.