Broker snap: Chances running out for Cairn, says Matrix

5th Aug 2011 12:55

Matrix has slashed its target price for Cairn Energy and maintained its hold rating on the stock, saying that "chances are running out" for the oil explorer."There are now only three opportunities for drilling success this year in Greenland, and the chances for achieving it look slim," said analyst Charlie Sharp.The comments come two days after the group announced that the well on the Lady Franklin Block offshore Greenland reached target depth and is being plugged and abandoned."We think the best strategy is to buy on success," Sharp suggested.The target price is lowered from 410p to 370p.Shares fell 4.12% to 297.7p at 12.53pm on Friday.BC