LONDON (ShareCast) - (Sharecast News) - Analysts at Barclays stood by their 'overweight' recommendation for shares of Harbour Energy, highlighting to clients the outfit's "significant leverage" to near-term commodity prices.
That, they said, should translate into an "attractive" dividend yield with a first payout likely after the full-year results for the 2021 financial year.

Other positives included the integration of the Chryasor and Premier Oil businesses, which they said was progressing to plan.

Furthermore, the near-term outlook for cash flows was benefitting from the stronger-than-expected forward curve for Brent and UK natural gas.

The analysts added that using the then current forward curve for Brent and UK gas, rather than Barclays' base case assumptions, would translate into an approximately 40% boost to the firm's free cash flow in the back half of FY2021 and roughly 25% for FY2022.

Barclays also set a new target price for the shares of 620.0p to account for the recent share consolidation.

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