InterOil from the Raymond James Global Oil and Gas Exploration and Production Research update:
"Our NAV estimate of $87.35 per share comprises a sum-of-the-parts valuation, as detailed below. We are slightly reducing our target price from $75 to $70, reflecting recent multiple compression in the space. The target price's discount to NAV reflects a conservative approach until resource certification materializes. Our positive stance on InterOil is predicated on its long-term cash flow potential and the expectation of impactful catalysts, balanced by operational, timing, and regulatory risks. There will be more business development milestones in the future, including resource certification (and thus presumably a sizable check from Total) in 2016. This does not depend on improvement in the oil price backdrop, but any such improvement would boost the sentiment for the stock as well."
"Our NAV estimate of $87.35 per share comprises a sum-of-the-parts valuation, as detailed below. We are slightly reducing our target price from $75 to $70, reflecting recent multiple compression in the space. The target price's discount to NAV reflects a conservative approach until resource certification materializes. Our positive stance on InterOil is predicated on its long-term cash flow potential and the expectation of impactful catalysts, balanced by operational, timing, and regulatory risks. There will be more business development milestones in the future, including resource certification (and thus presumably a sizable check from Total) in 2016. This does not depend on improvement in the oil price backdrop, but any such improvement would boost the sentiment for the stock as well."