Buy or sell EnQuest? City brokers undecided following new funding deal

Both Barclays and Liberum agree that the deal is a positive, but the outlook is very different.

Enquest offshore operations
Prevailing oil prices are key to the respective broker calls

City brokers are seemingly split on North Sea oiler EnQuest Plc (LON:ENQ) following last week’s US$100mln funding and new debt restructuring arrangements.

Both Barclays and Liberum agree that the deal is a positive, but their point of view is notably different.

Barclays’ analyst James Hosie says the funding give EnQuest a platform thrive in a rising oil price environment, whereas Liberum’s Andrew Whittock says the oiler’s valuation relies on higher crude prices.

EnQuest is today upgraded to ‘overweight’ from ‘underweight’ by Barclays, with Hosie saying: “We believe the stock currently offers an attractive opportunity for investors with a positive outlook on oil prices through 2017.”

Liberum meanwhile repeated a ‘sell’ recommendation, and kept a 25p which sees the price falling back from the current 29.35p level.

Elsewhere on Monday, HSBC upgrades United Utilities Group PLC (LON:UU.) to a ‘buy’ from ‘hold’, setting a £10.60 per share target which suggests some 12.5% upside to the current price of 941p.

Morgan Stanley downgrades UK department store Debenhams Plc (LON:DEB) to ‘equal weight’ from ‘overweight’.

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...



Global Energy Metals in London discussing plans to develop cobalt projects...

Global Energy Metals Corporation (CVE:GEMC) (OTCMKTS:GBLEF) CEO Mitchell Smith caught up with Proactive's Andrew Scott while in London to update shareholders on progress within its portfolio of cobalt and battery metal projects. Smith says the firm's well-placed to take advantage of the...

13 hours ago

2 min read