Up 30% in 2022, is it too late to buy Beach Energy shares?

Beach Energy could be one to keep an eye on, according to some brokers.

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Key points

  • Beach Energy shares are well in the green so far in 2022
  • Broker sentiment is overwhelmingly positive towards the stock, with most urging their clients to buy Beach Energy shares
  • In the last 12 months, the Beach Energy share price has climbed more than 27%

The Beach Energy Ltd (ASX: BPT) share price has tracked higher in 2022 and is now more than 30% higher than it was at the start of the year.

Beach Energy shares have swung over a fairly wide range over the past three months as well, and have seen a small dip over the last five trading sessions.

However, in early trade this morning, the oil and gas producer’s share price is up 2.75% at $1.68.

Are Beach shares cheap?

Analysts at JP Morgan are overweight on Beach Energy shares and reckon there’s plenty of upside yet to be baked into the miner’s growth engine.

“Beach reported a strong quarterly result with higher than expected revenue driven by strong commodity prices,” the broker said in a recent note.

Such a result was helped by Beach’s “exposure to a diversified suite of assets in Australia”.

The company is net cash and therefore Beach has the strongest balance sheet of the large-caps under coverage. While we like the company’s leverage to East Coast gas prices, we also see some risks given the recent issues with well interference at the Western Flank. Nonetheless, at the current valuation, we remain Overweight-rated.

JP Morgan rates Beach Energy a buy on a $1.85 price target, not too shy from the other 12 brokers urging their clients to buy, per Bloomberg data.

However, within this coverage, three analysts also advocate to sell – two of those being Morgan Stanley and Macquarie.

Otherwise, the sentiment towards the company is tilted heavily towards bullish, and most of the commentary is tipping Beach to perform well throughout the remainder of 2022.

Meanwhile, the consensus price target from all coverage according to Bloomberg is $1.92 per share, suggesting around 14% upside potential.

Beach Energy share price snapshot

In the last 12 months, the Beach Energy share price has climbed more than 27% and is tracking around 2% higher for the last month of trade.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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