OSH – UBS rates the stock as Buy

By Broker News | More Articles by Broker News

Oil Search has announced a US$700m capital raising at $2.10 a share as well as a nine-month extension to its US$300m facility. Production and capital guidance has been maintained.

UBS estimates now reflect the extra shares on issue and an oil price forecast of US$35/bbl in 2020. Easing of concerns over the balance sheet should enable a market to focus on internal options, the broker suggests.

Buy rating maintained. Target is raised to $3.10 from $2.70.

Sector: Energy.

Target price is $3.10.Current Price is $2.57. Difference: $0.53 – (brackets indicate current price is over target). If OSH meets the UBS target it will return approximately 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).

RELATED COMPANIESTagged

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →