Serica Energy gets Jefferies 'buy' rating and 320p price target

What Brokers Say Energy Written by: Ian Lyall 15:00 Wed 09 Sep 2026 --> Edited by: Jamie Ashcroft Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Ian Lyall Ian Lyall, a seasoned journalist and editor, brings over three decades of experience to his role as Managing Editor at Proactive. Overseeing Proactive's editorial and broadcast operations across six offices on three continents, Ian is responsible for quality control, editorial policy, and content production. He directs the creation of 50,000 pieces of real-time news, feature articles, and filmed interviews annually. Prior to Proactive, Ian helped lead the business output at the Daily... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. Serica Energy PLC ( AIM:SQZ ) View Price & Profile Serica Energy gets Jefferies 'buy' rating and 320p price target Published: 15:00 09 Sep 2026 BST Serica Energy PLC (AIM:SQZ) drew renewed backing from Jefferies, which reinstated coverage on Tuesday as production growth prospects outweighed cuts to output and cash flow forecasts. In Wednesday trading, the shares stood at 275.21p, up 4%, while the broker reinstated coverage with a 'buy' rating and a 320p price target. Underpinning the call, Jefferies assumes the Spirit Energy acquisition closes on 1 October, adding 12,300 barrels of oil equivalent per day (boepd) to 2027 production. Including those assets, the bank raised its 2027 average production forecast by 15% to 50,540 boepd, with new drilling supporting output above 50,000 boepd from 2027 through 2030 and beyond. For 2026, the analysts cut estimated production by 7% to 41,710 boepd to account for summer maintenance at Triton. To bankroll longer-term growth, Jefferies models annual capital spending of around $450 million in 2027 and 2028, more than double its $195 million estimate for 2026. Reflecting the heavier investment , the bank cut its 2027 free cash flow forecast by 81% to $49 million, while still projecting $39 million of 2027 year-end net cash. Alongside this expansion, Serica's dividend policy targets distributions of 15% to 30% of operating cash flow after tax, with further UK and international acquisitions offering additional upside. Next, Bruce drilling expected from the third quarter of 2027 could add more than 10,000 boepd, with first production expected around 2028. Continue reading