It is harder work picking winners in the oil and gas sector now that crude prices have steadied and share prices have climbed, so says Macquarie.
Kate Sloan, analyst at Macquarie, most share prices are close to fair value and as a result many in the sector have been downgraded.
Hurricane Energy Plc (LON:HUR) is deemed to have the clearest value opportunities.
“Hurricane offers 82%+ upside to our target price from the current share price, and has the clearest near-term tangible value creation opportunities, in our view.
“Further exploratory drilling (ongoing) and progress on the Lancaster development could add significant value, building on the success the company enjoyed in 2016.”
Macquarie has a 90p price target for Hurricane (current price: 51.25p).