Energy Sector Ripe For Re-Rating : vimarsana.com

Energy Sector Ripe For Re-Rating


Jul 14 2021
While energy might be ‘on the nose' for many investors, all brokers expect rapidly changing supply dynamics, fuelled by an unwillingness to invest in large and expensive projects, is likely to support the sector
-Australian energy sector has significantly underperformed global peers
-Rising oil/LNG prices to drive energy stocks higher
-Sharp valuation discounts expected to close
By Mark Story
Given the long overhang cast by covid, carbon concerns and heightened considerations around ESG investing, it’s hardly surprising that the energy sector, both here and globally, has been regarded as something of a pariah by investors.
While stocks in general are seen as overvalued with prices returning to normal following the worst of the pandemic, the Australian energy sector has been left behind by both the broader market and global peers alike.

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