Canaccord Genuity lifts EnQuest target price after Magnus transaction

(Sharecast News) - Canaccord Genuity has raised its target price for EnQuest from by over a quarter, hailing the "considerable value" unlocked by a transaction affecting the oil group's Magnus field in the North Sea. Canaccord Genuity kept a 'buy' rating on the stock, lifting its target price from 22p to 28p.

Updates on 2025 trading showed "strong operational delivery", according to Canaccord Genuity, with full-year production of 45.6kbopd coming in ahead of the 40-45kbopd guidance. 2026 guidance was 41-45kbopd, with upside limited from early-year downtime at Magnus and natural declines at the Kraken field.

However, the broker said the "standout news" from Monday's update was that EnQuest is paying $60m to secure 100% of future Magnus field cashflows, settling the contingent liability to the previous operator which the company had valued at $433m.

The deal gives EnQuest "full economic exposure to its most important asset at a very attractive and highly accretive price", Canccord Genuity said.

The broker explained: "The settlement price is c.1x our previously projected yearly contingent liability well into the 2030s, with expected field life into the late 2030s. As the field provides c.35% of EnQuest's total output its importance is clear, and in our view this transaction is the company's most accretive for several years, even topping the excellent Vietnam production acquisition in 2025."

The stock was up 3.7% at 15.62p by 1252 GMT.