INDO - Indonesia Energy Corp (INDO) - Rating upgraded to Market Perform following sharp price decline

We are raising our rating on the shares of INDO to Market Perform from Underperform. The shares of INDO took on a MEME stock character beginning in the third week of February rising from a price near $4.50 per share to as high as $87 per share in a mere two weeks. During that two week period, there were no significant company developments although it should be noted that oil prices rose from $92/bbl to $109/bbl. Since peaking on March 7th, the shares have steadily declined, recently settling at a price near $20 per share. We downgraded the stock to Underperform from Outperform on March 8th after the stock shot through our $15 price target. Since that time, oil price have been relatively flat and the only company development was the filing of a preliminary prospectus (3/8/22) for the resale of up to 9.1 million shares of stock including 8.3 million by an unnamed shareholder. As such, we continue to believe a fair value for the stock to be around $15 per share, although we do not formally set price targets for Market rated stocks.With the shares of INDO now trading near $20 per share, we believe the shares trade close enough to our fair value estimate to warrant a Market Perform rating. We caution investors that the shares of INDO are thinly traded and can be extremely volatile. We recommend using our fair value estimate as a guide when buying or selling shares. Read More >>