American Energy Group was founded in 1987, and is currently headquartered in Westport, Connecticut. The company engages in the acquisition and development of oil and gas assets. It has an 18% overriding royalty interest in the Yasin Concession in Pakistan, and a working interest in an oil and gas lease in Galveston County, Texas.
RedChip Research Analyst, Clay Mahaffey, CFA, issued an $8.00 price target stating that although the 800% increase seems very speculative, there are several solid reasons that supports the high target.
The company is extremely undervalued because of operational delays, legal actions, and a very conservative communications policy creating a lack of awareness to the investment community. Most of these issues have already been addressed; he believes $8 is realistic because of the high possibility to see new drilling initiated.
He concludes the report stating, “We initiate coverage on American Energy Group, Ltd. with an Aggressive Speculative Buy rating.”
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