Broker snap: Nomura raises Tullow Oil to neutral

1st Jul 2013 09:47

Analysts at Nomura have upped their view on shares of oil exploration group Tullow Oil ahead of what they expect will be a positive trading update this next Wednesday. That is particularly true, they believe, given the generally sombre outlooks typical for large-cap majors in Europe and after a 40% fall in the share price (in US dollar terms) since last February. Then there are the upcoming 'trigger well' results expected in the next few months. In that regard the broker writes that "a six pronged campaign testing multiple geological plays suggests Tullow's business remains extremely active and competitive."In particular, flagship drilling in Kenya, FG, Mauritania, and Norway will keep the 'wells to watch' investors busy in the second half of the year, it adds.Nomura has raised its view on the shares of Tullow Oil to neutral from reduce, albeit while reducing its price target to 1,250p from 1,400p previously.AB