UPDATE: Barclays Reiterates Kosmos Energy at Overweight on Risk/Reward
Barclays reiterated its Overweight rating on Kosmos Energy (NYSE: KOS) and maintained its price target of $14 as it sees significant upside potential.
Barclays commented, "We spent the past two days on the road with KOS's CEO Brian Maxted and VP, Investor Relations Brad Whitmarsh. We believe that at the current share price, KOS shares offer significant upside potential and limited downside. We expect production in Ghana to rise roughly 50% in 2013 and then 10-15% per year through 2017. This production can be delivered by a) reaching a plateau production of 115-120 mbopd at Jubilee (vs. 2012 guidance of 70-80 mbopd) by early-mid 2013, b) assuming the Ghana government approves the PoD at the TEN complex - we estimate production could be ~75-100 mbopd by early 2016 and c) by expanding the Jubilee FPSO capacity from 115-120 mbopd now to as much as 140-150 mbopd."
Kosmos Energy closed at $11.40 on Tuesday.
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