Romgaz faces transformational years ahead, but stock growth potential is limited in the short term - Wood&Co report

The firm maintained its “Hold” recommendation on Romgaz shares, with a raised price target of RON 8.2, slightly below the current share price of RON 8.45. At the heart of the story is Neptun Deep, the offshore Black Sea project that Romgaz is developing together with OMV Petrom. Cash-heavy project, temporary strainUntil Neptun starts producing, Romgaz will face significant financial pressure. The analysts argue this is justified, given the scale of the Neptun project. As Wood&Company concludes, Romgaz is “nearly there”, but the hardest work still lies ahead.