Tullow Oil: Berenberg upgrades stock

(CercleFinance.com) - Berenberg has upgraded its rating on the Tullow Oil share to "buy," while raising its corresponding target price to 240 pence, highlighting the British oil company's major discovery offshore Gynana.
 


"A discovery at the Jethro field offshore Guyana and the subsequent de-risking of exploration potential in the Orinduik block address one of the key problems of Tullow Oil's investment thesis - portfolio depth," the broker says.

Berenberg also believes that the resulting reduced risk, "may allow Tullow to monetise part of its 60% stake in the block, which would subsequently address its balance sheet problems once and for all".

The share is soaring 17% in London this morning.


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