UPDATE: Global Hunter Securities Initiates Accumulate, $115 PT on Hess Corporatio
Global Hunter Securities initiates coverage of Hess Corporatio (NYSE: HES) with a Neutral rating and $70 price targe as the company becomes leaner following the shutdown of its primary refining asset.
Global Hunter Securities says, "After shutting down its primary refining asset, HES's goal is to become a leaner, more focused E&P. After a tough 2011, with an 11% drop in company-wide production, management is reducing capex making execution the watchword in 2012. The loss of Libyan output and weather issues in the Bakken, issues beyond management's control, drove the shortfall. But following some dry holes the company is narrowing its focus to key US shales, the GoM and a short list of international assets. New plays in Africa, Brazil and Australia could be farmed out or sold to drum up cash for more unconventional development."
HES closed at $63.50 a share on Tuesday.
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