UPDATE: Deutsche Bank Lowers PT on Cobalt International Energy on Expected Investor Focus Shift
In a report published Friday, Deutsche Bank analyst Ryan Todd reiterated a Buy rating on Cobalt International Energy (NYSE: CIE), but slightly lowered the price target from $41.00 to $40.00.
In the report, Todd noted, “With the long-delayed Cameia deep DST now in the rearview mirror, we expect investor focus to fully shift to the significant potential in the upcoming exploration program. Although the valuation impact is negligible in comparison to the larger investment case, short-term concerns around the difficult to quantify/handicap deep flow test have served as a headwind to the stock. With the test out of the way, and a currently implied $2.50/sh of value for future exploration success (vs. $30/$60/sh of potential value over 6/12 months), we see a clear path towards what in our view, is easily the best risk-reward in all of energy.”
Cobalt International Energy closed on Thursday at $26.57.
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