Tullow Oil plc (LON:TLW) shares rose almost 3% in morning deals after it saw a big upgrade from broker RBC Capital Markets.
RBC analyst Al Stanton has moved to ‘outperform’ and set a new target price of 260p, up from 200p, as he looked ahead to the resumption of development work at the TEN project, offshore Ghana.
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Stanton highlighted that Tullow is now gaining momentum and he pointed to a number of positives – including the restart of work at TEN, resolution to Jubilee turret problems, and the benefits of the recent refinancing.
“With debt under control and a tight rein on spending, exploration and development campaigns should now drive sustainable growth,” Stanton added.
“Having been shunned by many investors, the stock has some catching up to do, and given its oil price leverage we expect Tullow to outperform many of its peers in the current, rising oil price environment.”
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Tullow on Monday told investors that it could now continue development at TEN after an international offshore territory between Ghana and Cote d’Ivoire was concluded without any impact to the TEN area.