Barclays has a 145p price target, suggesting some 22% upside to the current price – Premier shares, meanwhile, advanced about 5% to 118p.
It comes as Barclays analyst James Howie revised a number of exploration and production companies, in the wake of the strengthening crude price.
Howie, in a note, highlighted that as better prices boost cash flow, it will be the debt-levered oil producers that should benefit most. Barclays’ new Brent base case is now fixed on US$65 per barrel, up from US$60.
Specifically, for Premier Oil, the analyst believes Brent crude prices at around US$70 through 2018-19 will remove any remaining balance sheet concerns and it will allow the management team to focus more on growth projects.