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Investing.com - Wells Fargo initiated coverage on Tamboran Resources Corporation (NYSE:TBN) with an Overweight rating and a $35.00 price target on Tuesday. The stock currently trades at $23.73, with a market capitalization of approximately $496 million.
The investment bank highlighted Tamboran’s focus on shale gas exploration and production in Australia’s Beetaloo Basin, where the company controls 2.9 million net acres following a recent merger.
Wells Fargo noted that Tamboran has established a three-phase development plan targeting up to 2 billion cubic feet per day of production intended for premium markets.
The firm compared the well characteristics to those of the core Marcellus shale formation, suggesting familiarity for U.S. exploration and production investors. InvestingPro data shows the stock has a Strong Buy consensus among analysts, with price targets ranging from $35 to $53.
Wells Fargo expects Tamboran shares could experience a rating adjustment as pilot well data becomes available in the first quarter of 2026, with the $35 price target based on a build-up value calculation for each development phase. InvestingPro analysis indicates the company is currently overvalued and has a WEAK financial health score, with one key concern being that it’s quickly burning through cash. Get access to more ProTips and comprehensive research reports for over 1,400 stocks with an InvestingPro subscription.
In other recent news, Tamboran Resources reported its Q1 2025 financial results, highlighting a strong cash position and strategic progress in its operations. The company ended the quarter with a cash balance of $39.6 million, supported by a $56.1 million public offering. Despite these financial strengths, the company did not provide positive earnings guidance, which may have led to some investor uncertainty. The absence of forward-looking earnings expectations was noted during their earnings call. These developments come amidst ongoing evaluations by analysts and investors. While the company has bolstered its cash reserves, its future earnings potential remains a point of discussion. The market’s reaction to the earnings call was mixed, reflecting the cautious outlook without clear earnings guidance.
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