Platina Energy is an independent exploration and production company with oil and gas lease properties in North America, and uses a proprietary enhanced recovery technology. The company owns proven reserves which value over $60 million, and owns producing wells that are currently producing in Texas.
The increasing energy demand and new technological developments give Platina Energy excellent potential to increase revenues and expand into new areas. According to the Energy Information Administration, average US oil consumption is expected to reach nearly 26.1 million barrels per day by 2025.
The analyst closed the report stating, “Other independent energy companies were recently trading at forward Price/Sales multiples ranging between 4.3 times and 1.8 times revenues and averaging around 3.2 times revenues. With a current market capitalization below $10 million, Platina is trading at only about 0.5 times projected FY 2008 gross revenues of $25 million. Our $1.50 price target suggests a Price/Sales multiple for Platina ranging between 1.0 and 2.0 times forward revenues – still conservative when compared to peer group valuation multiples.”
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