UPDATE: Deutsche Bank Reiterates Buy Rating, Raises PT on Cobalt International Energy
In a report published Wednesday, Deutsche Bank reiterated its Buy rating on Cobalt International Energy (NYSE: CIE), and raised its price target from $36.00 to $39.00.
Deutsche Bank noted, “CIE's successful discovery at the North Platte prospect in the US Gulf of Mexico is an outstanding start to a very active 12-15 month drilling program. Our thesis at CIE has been its unique position in US E&Ps in its ability to accrete value via the drill bit, and the most attractive risk reward in our coverage universe. Key to the long term thesis has been the potential of a GOM program which has been underappreciated by the market, and our view that eventual success rates, both in the US GoM and West Africa will be far higher than the market currently assumes. Today's announcement is key in highlighting the first point, while increasing market confidence and momentum into the 10-12 wells ($65-$70/sh unrisked) to be drilled over the next 12-15 months. Maintain BUY and top pick. Target price to $39/sh.”
Cobalt International Energy closed on Tuesday at $23.78.
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