Davy Research

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Could this be oil’s year?
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Premier Oil | Kenmare | Tullow Oil | Cairn Energy plc

DAVY VIEW

The late 2016 OPEC deal pulled the oil price out of the doldrums in 2017. At the same time, economic recovery provided the demand to shift metal prices from their early 2016 funk. Since their respective troughs, metal stocks have performed reasonably well but oil-related stocks have underwhelmed. Could 2018 be oil’s turn? For now, we feel the oil price may settle in the low $60/barrel range but, helped by on-going self-help such as free cash flow resurgence and falling debt, oil and gas stocks could finally rediscover a degree of vitality. Our preferred picks in the sector are Tullow Oil and Cairn Energy

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  • RATINGS AND PRICE CORRECT AT TIME OF ISSUE


  • Kenmare

    Closing Price: 347p

  • RATING 03/08/16

  • PREVIOUS RATING 07/12/15

    Under Review

  • Premier Oil

    Closing Price: 94.2p

  • RATING 20/06/14

  • PREVIOUS RATING 03/04/12

    Outperform

  • Tullow Oil

    Closing Price: 254p

  • RATING 30/06/09

  • PREVIOUS RATING N/A

  • Cairn Energy plc

    Closing Price: 282p

  • RATING 05/12/16

  • PREVIOUS RATING 24/03/14

    Neutral

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