UPDATE: Deutsche Bank Raises PT to $16 on Kosmos Energy Post Jubilee Equity Sale
Deutsche Bank maintained Kosmos Energy (NYSE: KOS) with a Hold rating and raised the price target from $15.00 to $16.00.
Deutsche Bank commented, "With prior operational issues at Jubilee behind them, KOS (or rather its largest shareholders) took a material step towards addressing one of the remaining overhangs on share price performance: limited liquidity. KOS announced the sale of 30MM shares by existing shareholders (27.5MM from Private Equity, 2.5MM from management), a ~43% increase in current liquidity, increasing the float from ~18% to ~25%. Although we expect near-term weakness on deal pricing and liquidity will remain a challenge, we view the move as a positive step in the right direction, allowing the market to focus increasingly on upcoming xploration potential, including near-term Sipo in Cameroon."
Kosmos Energy closed at $12.75 on Monday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.