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’.