The Beach Energy Ltd (ASX: BPT) share price is having a disappointing year.
Since the start of 2021, the energy producer's shares have lost 21% of their value and trade at $1.45 today.
Could the Beach Energy share price bounce back to $1.70 by Christmas?
The good news for shareholders is that one leading broker believes the Beach Energy share price could rebound strongly from here.
According to a recent note out of Morgans, its analysts have an add rating and $1.71 price target on the company's shares.
Based on the current Beach Energy share price, this implies potential upside of 18% for investors. This increases to 19% if you include the broker's forecast for a 2 cents per share dividend in FY 2022.
All in all, the broker appears to see scope for Beach Energy's shares to be back around the $1.70 mark come Christmas time.
Why is the broker positive?
Morgans is feeling positive about the energy sector.
It commented: "As expected the oil & gas sector is now enjoying a 'catch up' rally, as a delayed re-rating to rising oil and gas prices starts to kick in. We see real upside risk to current oil price assumptions, but see increased market confidence in oil's floor as the greater positive likely to drive a lasting re-rating for sector valuations."
And while Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) are Morgans' top picks, it is also very positive on the Beach Energy share price.
"Amongst the large-caps we maintain our top equal preference for WPL and STO. We view both companies as well positioned as both pursue their own transformative mergers. WPL holds much larger exposure to spot oil and gas prices, while STO boasts a strong diversified earnings mix and investor support."
"We also remain confident on value being on offer in BPT and COE. Both less exposed to current spot commodity prices, but both still looking oversold in long-term value terms with attractive upside," it concluded.
