Berenberg backs the Hurricane Energy share price despite Warwick West disappointment
Analysts at the Hamburg-based bank reiterated their ‘buy’ rating for the UK-based oil and gas company despite disappointing test results at its Warwick West site that have seen its shares plummet this week.
Analysts at Berenberg remain optimistic about Hurricane Energy, despite its disappointing test results from its Warwick West well sending its share price sliding more 16% this week.
The Hamburg-based bank reiterated its ‘buy’ rating and issued a 100p target price for the stock, representing a potential upside of 212%.
Hurricane Energy is trading 32p a share as of 12:45 GMT on Friday.
Berenberg remains focused on Lancaster site
While analysts at Berenberg agreed that flow rates at the Warwick West well were insufficient to be commercially viable, they had not banked on the site reaping major rewards, with the bank pinning its hopes on its site in Lancaster.
‘The focus remains on Lancaster, where results from the early production scheme continue to deliver in line with guidance,’ Berenberg analysts said in a note.
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Barclays Capital doesn’t share Berenberg’s optimism
Analysts at Barclays Capital failed to share Berenberg’s optimism about Hurricane Energy, with the bank reiterating its ‘overweight’ rating for the stock and downgrading its target price from 55p to 50p in December.
The new target price still implies a potential upside for the stock of 56%, however.
You can go long or short Hurricane Energy with IG using derivatives like CFDs.
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