On Monday, Piper Sandler confirmed its positive stance on Tamboran Resources Corporation (NYSE:TBN), maintaining an Overweight rating and a $41.00 price target for the company's stock, representing significant upside from the current price of $17.50.
According to InvestingPro data, analyst targets range from $31 to $53, with the stock currently appearing overvalued based on Fair Value analysis. The affirmation follows Tamboran's recent progress in its operational plans, specifically the development of necessary infrastructure for phase 1 of its project, which is expected to commence production in the first half of 2026.
The company has recently finalized an agreement with its midstream provider to construct the infrastructure needed for phase 1, keeping the project on track for its anticipated start. With a healthy current ratio of 2.59 and strong balance sheet position, InvestingPro data shows Tamboran maintains more cash than debt, though it's currently burning through cash reserves. Tamboran has successfully drilled the first two pilot wells for this phase and anticipates beginning completion operations in early January. Results from flow tests on these wells are expected by the end of March.
Furthermore, Tamboran Resources is on course to secure the remaining funding required for the entirety of phase 1 development. This phase is projected to yield 40 million cubic feet per day (mmcf/d) of gross production, starting in the first half of 2026. In addition to these developments, the company is actively engaged in negotiations to farm down its interest as a strategy to obtain financing for the subsequent phases 2 and 3 of the project.
Piper Sandler's continued Overweight rating and $41 price target reflect confidence in Tamboran Resources' potential. The firm views the company as an attractively priced opportunity, given the significant resource potential and direct access to premium international gas markets that Tamboran offers.
In other recent news, Tamboran Resources Corp saw several significant developments. In its 2024 Annual Meeting of Stockholders, the company's shareholders approved the re-election of its three Class I directors and ratified Ernst & Young LLP as its independent auditor for the fiscal year ending June 30, 2025. The issuance of common stock to Helmerich & Payne International Holdings, LLC and Daly Waters (NYSE:WAT) Energy, LP, as well as shares worth up to $600,000 to Mr. Ryan Dalton under the 2024 Equity Incentive Plan, were also approved.
Tamboran Resources' ongoing drilling activities have been a focal point for investors, particularly the Shenandoah South #2 well in the Beetaloo Basin, expected to be completed before the company's next earnings report. RBC (TSX:RY) Capital maintained a Sector Perform rating for the company, setting a $31.00 stock price target. Citi also gave Tamboran a Buy rating with a $32 price target, emphasizing the company's exploration potential.
Piper Sandler upgraded Tamboran to an Overweight rating with a price target of $41, citing the company's significant natural gas resource potential. These ratings reflect the analysts' confidence in Tamboran's ability to deliver value despite operational and geological uncertainties.
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