Morgan Stanley helped Hunting PLC’s (LON:HTG) shares to soar higher on Tuesday after it double-upgraded its rating for the mid-cap oil services provider following a big target hike.
The US investment bank upped its stance on the FTSE 250-listed firm to ‘overweight’ from ‘underweight’ after increasing its target price to 860p from 450p, reflecting a 32% boost to its forecast for 2019 underlying earnings (EBITDA).
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In mid-morning trading, Hunting was the second biggest FTSE 250 riser, with its shares up 5.5%, or 33.5p at 644.0p.
In a note to clients, the Morgan Stanley analysts said, “self-help initiatives could lead to new peaks in Hunting's perforating gun business, Titan.”
They added: “Higher oil prices, we think, should fuel activity in the US, a key driver for Hunting's perforating gun business.”
The analysts concluded: “We expect the stock to re-rate as revenue mix leads to margin expansion.“