In the good books
Beach Energy (BPT) was upgraded to Neutral from Underperform by Macquarie. B/H/S -1/3/2. Beach's March Q numbers were in line with expectations. FY production guidance has been narrowed to the middle of the range and capex guidance has been lowered. Capex deferrals and the divestment of 30% of Otway Basin could help fund the next phase of development, Macquarie suggests, unlocking undeveloped reserves and exploration upside on the back of recent drilling success. Valuation is closely leveraged to the oil price and higher prices lead to an upgrade to Neutral. Target rises to $1.20 from $1.05.