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Hurricane Energy one of the few ‘buys’ left in oil sector - Macquarie

“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.

oil platform
Valuations in the oil sector have caught up

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.

Cairn Energy PLC (LON:CNE), Faroe Petroleum plc (LON:FPM), Ithaca Energy Plc (LON:IAE), Premier Oil PLC (LON:PMO) and Tullow Oil plc (LON:TLW) are all relegated to a ‘neutral’ rating.

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).

Quick facts: Hurricane Energy PLC

Price: 10.62 GBX

LSE:HUR
Market: LSE
Market Cap: £2.11 m
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