I recently did a bit of digging into Camber Energy Inc (NYSEAMERICAN: CEI) and apparently, I wasn’t the only one that saw a potential opportunity. A report from Robert Goldman, Senior Analyst at Goldman Small Cap Research surfaced last week, with a price target suggesting the stock could see significant growth.
Robert Goldman Gives CEI a $2.75 Price Target
In the research report, Mr. Goldman laid out a strong argument that Camber Energy shares could climb to $2.75 within the next two to three quarters. The argument centered around a coming merger, diversification, an outdated opinion of the stock, and revenue expectations. Find the details of each below.
Camber to Merge With Viking… Soon
Two years ago, Camber Energy announced it would merge with Viking Energy Group Inc. (OTCMKTS: VKIN). Unfortunately, bad news struck, leading to a long-term delay in the closing. However, Robert Goldman expects the deal to finally come to a close later this year. In fact, Goldman and his team believe the deal could close as soon as the third quarter of this year.
Diversification
Robert Goldman also pointed out that Camber Energy has impressive diversification in its assets and operations. In fact, one of the highlights from the report reads:
“The Company is one of the most diverse equipment services companies in the energy and industrial segments. This diversification includes custom energy and power systems and services, clean energy technology, and interests in oil and gas interests.”
Potential Significant Undervaluation
In the report, Robert Goldman and his team point out that the proposed merger between Camber and Viking has taken some time. With two years of back and forth, investors have been frustrated, driving the price down and keeping valuations low.
However, the closing of the merger could change this. In fact, once executed, the deal opens the door to a pipeline of new business and merger and acquisition opportunities. As a result, if it does close in the next six to nine months, shares of CEI could go sharply higher.
Meaningful Revenue Ahead
The team at Goldman Small Cap Research performed full-year preliminary pro forma revenue forecasts for the combined company. According to their forecast, the company should produce around $31 million in revenue in 2023 and $42.2 million in revenue in 2024, excluding any new acquisitions. Not only is that impressive considering the company’s market cap is just over $34 million, but it also suggests that revenue will grow more than 36% from 2023 to 2024.
The Bottom Line
The bottom line is simple. If Robert Goldman and other experts are right, Camber Energy has the potential to see serious movement for the top in the near term. If you’d like to read the full Goldman report, click here.
Article Resources
- https://www.goldmanresearch.com/202303281368/Opportunity-Research/pending-merger-could-drive-nyse-players-market-cap-higher.html
- https://finance.yahoo.com/news/goldman-small-cap-research-publishes-113000222.html
- https://finance.yahoo.com/quote/cei
- https://www.google.com/finance/quote/CEI:NYSEAMERICAN?sa=X&ved=2ahUKEwiVvZ67ko7-AhUSkWoFHe8OD-cQ0pQJegQIBxAC
Disclosure: CNA Finance is not an investment advisor or broker-dealer. This article was written by Joshua Rodriguez and expresses his personal opinion of Camber Energy but should not be construed as a solicitation to buy, sell, or otherwise trade any specific security. This is a sponsored article and should not be considered investment advice. Investing comes with risk and CNA Finance strongly advises investors to seek advice from licensed professionals before making any investment decisions.