Oil Search’s Alaskan asset is “tracking in line with original expctations from a technical and permitting perspective”, according to management, but not in a funding/commercial perspective, the broker believes.
As the Alaska narrative deteriorates ahead of a hoped for selldown, this would make the Santos ((STO)) offer appear more attractive, the broker suggests, but also make Santos more wary. With Woodside Petroluem ((WPL)) sniffing around as well, the stock is supported.
But woudl fall into a hole if suitors deserted. The broker maintains a Neutral rating, cutting its target to $3.82 from $3.86.
Sector: Energy.
Target price is $3.82.Current Price is $3.94. Difference: ($0.12) – (brackets indicate current price is over target). If OSH meets the Credit Suisse target it will return approximately -3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
