RE: The Observer — Uganda expects $3.5bn oil investment deal by January1 Dec 2019 15:16
Nonetheless, Peel Hunt reckons the share sell-off – that saw the share fall 34% since mid-November - has been “overdone”.
At the same time the broker does reduce its target price for Tullow Oil to 211p per share, suggesting some 55% upside to the current price of 135.75p.
Peel Hunt, meanwhile, retains an ‘add’ recommendation for the oiler.
“Heavy oil is a major blow, but we think the share price reaction is overdone: stripping out Guyana gives a 211p/share Risked NAV,” analyst Matt Cooper said in a note.