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Investor Insights

This summary was created by AI, based on 4 opinions in the last 12 months.

Experts generally express a favorable outlook on Africa Oil Corp. (AOI-T), highlighting its strong management under the Lundin family and a consistent track record of returning cash to shareholders through dividends and share buybacks. Despite operating in an oft-maligned market for oil and gas, particularly in Africa, the company has made significant strides in debt reduction and is poised to enhance shareholder returns, while maintaining exploration activities in Nigeria and Namibia. The consensus suggests that the stock trades at a substantial discount to its net present value, implying that investors are acquiring valuable assets at a bargain. Overall, analysts emphasize the company's robust balance sheet, expected growth in revenues and earnings, and commitment to returning cash flow to investors, portraying a strong case for potential investment.

Consensus
Buy
Valuation
Undervalued
Similar
Petrobras,PBR
TOP PICK

Selling at a 50% discount to his assumed NAV. Primarily operates in Nigeria, second in Namibia. Likes Lundin family management (wonderful track record), and he's done business with them for almost 50 years. Aggressively returns cash to shareholders via dividends and share buybacks. Strengthening its balance sheet, reinvesting in the business. Yield is 3.53%.

(Analysts’ price target is $3.38)
TOP PICK

He likes out-of-favour assets. Oil & gas are out of favour, especially in Africa. Wonderful job of paying down debt from latest acquisition. Can now focus on returning cashflow to shareholders, while still exploring Nigeria and Namibia. 

Trades at 50% discount to net present value of existing Nigerian assets, which means you get everything else for less than free. Still has backing from the successful Lundin family. Yield is 4%.

(Analysts’ price target is $3.33)
RISKY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

AOI has lots of cash, a cheap valuation and very rapidly growing revenue and earnings as wells come onto production over the next two years. It is fairly small and needs to be considering high risk, but we would see it as a BUY for small cap sector investors. 
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TOP PICK

Believes stock is selling at less than half of what it is worth. Consolidation in assets very good for company. Increased interests in various African assets. Committed to distributing 50% of cash flow to investors through dividends. 

PAST TOP PICK
(A Top Pick Sep 02/22, Down 5%)

Disappointed that their Kenyan assets have taken longer to mature.  They continue to do well in Nigeria though. Troubling though not surprising is their CEO/founder retiring. He remains long.

PARTIAL SELL

He trimmed. Notes with some trepidation the retirement of the CEO, who is a personal friend. Amazing performer based on Nigerian assets. Exposes you to some political risk.

PAST TOP PICK
(A Top Pick Sep 02/22, Up 29%)

Sold Kenyan operations, but still active in Nigeria, Namibia, South Africa, and Guyana. He'd still recommend it for people who enjoy global exploration risk/reward. If you're looking for dividends, stick with conventional oil/gas.

HOLD

Recent success a bright spot for oil companies. 
Delay in Nigeria drilling a concern.
Funding concern in Kenya will determine outcome for the business.
Wonderful performance the past few years. 

TOP PICK
Excellent stock for risk oriented investors. Assets are worth double current market capitalization. Debt being paid off fast, with high exploration upside. Major undeveloped deposit in Kenya coming for free with current market cap. Despite political & oil price risk, current discount on share price providing large margin of safety.
BUY
There are political risks. Price is based on Nigerian assets alone. The major discovery in South Africa, world class discovery in Namibia and the exploration portfolio are not included in the stock price. The driver is production growth. Example of the sum of the parts is greater than the whole. The Lundin family has a controlling interest.
TOP PICK
Oil and Africa are both out of favour, so that's why he likes AOI. There's a LOT of political risk here, Kenya, but a billion barrels were discovered her which will reach markets in 2-3 years. They just did a $1.6 billion acquisition offshore Nigeria. A contrarian play. Be patient with this and avoid the headlines. (Analysts’ price target is $1.96)
COMMENT

Had a Short position on this for a while. Located in Kenya, Ethiopia and Somalia. Shorted this because it is a new basin so there is a question of valuation and tends to be a bit too frothy expectation. It will take them a while to deliver any meaningful production, possibly 2018, at the earliest. Thinks there could be significant weakness in the share price going ahead.

HOLD

They did what they said they would do. Crazy big wells. There is no infrastructure near these wells. The stock could double, but there is political risk and no infrastructure.

SHORT

Based in Kenya and South Sudan. Drilling expensive wells. Spent a lot of money. You won’t see production until 2020-2022. He is short but would buy on positive news.

BUY

Have been some major discoveries hear their area. The hit more water than they expected to. Longer term this is probably a very good story. People are taking a breather. Not a bad entry point.

Showing 1 to 15 of 16 entries

Africa Oil Corp.(AOI-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 1

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 1

Stockchase rating for Africa Oil Corp. is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Africa Oil Corp.(AOI-T) Frequently Asked Questions

What is Africa Oil Corp. stock symbol?

Africa Oil Corp. is a Canadian stock, trading under the symbol AOI-T on the Toronto Stock Exchange (AOI-CT). It is usually referred to as TSX:AOI or AOI-T

Is Africa Oil Corp. a buy or a sell?

In the last year, 1 stock analyst published opinions about AOI-T. 1 analyst recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Africa Oil Corp..

Is Africa Oil Corp. a good investment or a top pick?

Africa Oil Corp. was recommended as a Top Pick by on . Read the latest stock experts ratings for Africa Oil Corp..

Why is Africa Oil Corp. stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Africa Oil Corp. worth watching?

1 stock analyst on Stockchase covered Africa Oil Corp. In the last year. It is a trending stock that is worth watching.

What is Africa Oil Corp. stock price?

On 2025-03-19, Africa Oil Corp. (AOI-T) stock closed at a price of $2.09.