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Canaccord Genuity has initiated coverage of Sound Oil, which is soon to be renamed Sound Energy, with a “buy” recommendation and a target price of 30p. The broker said its focus on gas means it has been largely sheltered from recent oil price weakness. It believes the company represents compelling value at its current share price, despite outperforming its peers since the beginning of the year.
Jefferies said recent equity markets’ developments have enhanced the retailer’s appeal, with investors increasingly attracted to European cyclical recovery plays and the pound to euro exchange rate recovering. The broker retained its “hold” recommendation and target price of 350p.
UBS revised its ratings yesterday for many of the major oil giants after cutting its oil price forecasts for the period from 2015-19. The broker believes we may be closer to the trough on oil prices and companies are beginning to take the initiative. It said BP has been “harshly sold off” and upgraded the company from “neutral” to “buy” with a 420p target price from 450p previously.
City A.M. Reporter