UPDATE: Bank of America Upgrades Statoil to Buy, Raises PT on Growth Ambition

In a report published Wednesday, Bank of America analyst Matthew Yates upgraded the rating on

from Neutral to Buy, and raised the price target from $23.00 to $25.00. In the report, Bank of America noted, “We believe Statoil is following a sensible strategy, targeting modest production growth, balanced with respectable return investments carrying relatively low execution and political risk. Given the long lead times of project development, patience is required before the true earnings potential of the group becomes apparent; but $18bn of recent disposals serve to illustrate the inherent value within the portfolio and management's commitment to shareholders over other stakeholders. We believe Statoil has a growth ambition, but not an obsession – an important distinction. We upgrade to Buy with a PO of NOK150 [US$25.00].” Statoil closed on Tuesday at $21.43.