UPDATE: Global Hunter Securities Upgrades Hess to Buy on Divestment of Underperforming Assets
Global Hunter Securities raised its rating on Hess (NYSE: HES) from Neutral to Buy and increased its price target from $53 to $65.
Global Hunter Securities noted, "We are upgrading our rating on HES to Buy (from Neutral) and increasing our price target to $65 (from $53), representing 71% of our pretax NAV estimate (HES is trading at a P/NAV of 58% vs. a 72% median for peers) and a 3.5x EV/EBITDA multiple using our 2013 estimates. After some bumps in the road through Q2, including a not so well received capex boost, we believe HES's plan to scale back and refocus is taking shape. HES appears to be shedding those assets that don't add a lot of value, and outperforming with the assets it's retaining."
Hess closed at $53.39 on Friday.
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