UPDATE: Citigroup Raises PT on Cobalt International Energy to $42

Citigroup has published a research report on Cobalt International Energy CIE and has raised the price target from $26 to $42 believing that the company has a greater probability of success based on its conference call this morning. In the report, Citigroup writes, "We have increased the probability of success for Cameia at 2.0 BBOE to 80% from 50%, Block 21 Bicuar pre-salt prospect to 50% from 20%, other Angola Block 21 prospects to 40% from 20%, Angola Block 9 and Block 20 prospects to 33% from 20%. We have not changed our 16% success probability for prospects offshore Gabon and have not made any adjustments to our risk factors for the company's deepwater Gulf of Mexico prospect inventory. As a result, our price objective increases to $42 from $26 per share based on flat $90/Bbl oil." Citigroup maintains its Buy rating on Cobalt International Energy, which is currently trading up $8.12 from yesterday's $23.90 closing price.