Jefferies Lifts Ithaca Energy Target, Calls It ‘a Transformed Investment Case’

Jefferies raised its price target on Ithaca Energy (LON: ITH) to 350 pence from 210 pence and reiterated its Buy rating, calling the North Sea oil and gas producer a different company since its 2024 business combination with Eni UK.

Analyst Mark Wilson said Ithaca represents “a transformed investment case” following the Eni UK combination, which significantly expanded the company’s production base and asset portfolio.

The new target implies approximately 47% upside from the current share price of 238.8 pence, which has pulled back more than 9% over the past month despite a 42% gain year to date and a 67.5% advance over the past 12 months.

Jefferies also flagged media reports of discussions between BP and Ithaca regarding a potential UK North Sea deal.

Neither company has commented on the reports. However, the firm said it views it as reasonable to see Ithaca as capable of considering and executing such a transaction.

Last week, the Financial Times reported that BP had held advanced talks to sell its ​UK North Sea assets to Ithaca ‌Energy in a deal worth nearly £2 billion.

Citing people familiar with the matter, the report stated that the talks had failed in recent weeks, although BP is still assessing options and could seek a deal with other competitors.