MARKET TALK: Nomura Adjusts Targets On UK Oil & Gas Stocks

18th Jun 2010 09:23

0823 GMT [Dow Jones] Nomura adjusts target prices on four UK oil and gas stocks, noting a pick-up in M&A activity, which the brokerage expects to be sustained into 2H'10. It notes planned deals from Afren (AFR.LN) and Dana Petroleum (DNX.LN) over recent weeks. It reckons one of the implications from the BP oil spill will be a shift in focus from the deepwater Gulf of Mexico into international opportunities, therefore increasing the value and appetite for exposure to regions where the UK E&P sector remains focused. Nomura says valuations are attractive. Raises Cairn Energy (CNE.LN) price target to 488p from 479p, Premier Oil (PMO.LN) to 1671p from 1649p and Soco International (SIA.LN) target to 466p from 460p. Nudges Dana Petroleum target to 1618p from 1617p. Cairn and Soco rated neutral and Dana and Premier reduce and buy, respectively. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 18, 2010 04:23 ET (08:23 GMT)