Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Buy or sell EnQuest? City brokers undecided following new funding deal

Enquest offshore operations
Prevailing oil prices are key to the respective broker calls
Jamie_55a91591db06b.jpg

City brokers are seemingly split on North Sea oiler EnQuest Plc (LON:ENQ) following last week’s US$100mln funding and new debt restructuring arrangements.

Both Barclays and Liberum agree that the deal is a positive, but their point of view is notably different.

Barclays’ analyst James Hosie says the funding give EnQuest a platform thrive in a rising oil price environment, whereas Liberum’s Andrew Whittock says the oiler’s valuation relies on higher crude prices.

EnQuest is today upgraded to ‘overweight’ from ‘underweight’ by Barclays, with Hosie saying: “We believe the stock currently offers an attractive opportunity for investors with a positive outlook on oil prices through 2017.”

Liberum meanwhile repeated a ‘sell’ recommendation, and kept a 25p which sees the price falling back from the current 29.35p level.

Elsewhere on Monday, HSBC upgrades United Utilities Group PLC (LON:UU.) to a ‘buy’ from ‘hold’, setting a £10.60 per share target which suggests some 12.5% upside to the current price of 941p.

Morgan Stanley downgrades UK department store Debenhams Plc (LON:DEB) to ‘equal weight’ from ‘overweight’.

Jamie_55a91591db06b.jpg


Register here to be notified of future ENQ.L Company articles

No investment advice: The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use