UPDATE: Global Hunter Securities Initiates Buy, $15 PT on Kosmos Energy; High Risk, High Reward

Global Hunter Securities initiates its coverage on Kosmos Energy

with a Buy rating and a price target of $15. Global Hunter Securities notes, "Kosmos Energy (KOS) is at the forefront of Atlantic Transform Margin exploration. As a partner in the Jubilee field, KOS was part of the consortium that opened up the play with plenty of upside potential in the immediate neighborhood. The company is now exploring from Morocco to Cameroon, as well as across the Atlantic in Suriname. We estimate that KOS can fund expected 2012 spending with cash on hand, augmented with Jubilee cash flow. We believe KOS has significant production upside potential given the company's portfolio and pedigree, including both management and the initial private equity backers. Earnings will likely be lumpy since the company is driven by the Jubilee lifting schedule, but we believe patient investors will be rewarded with further drillbit success." KOS closed at $10.11 on Friday.