In a report published Friday, Bank of America analyst Doug Leggate reiterated a Buy rating and $130.00 price target on Hess Corp. HES.
In the report, Bank of America noted, “Only a few weeks since Hess' hosted its Analyst update, a recent road trip with management underlined several issues we believe continue to be overlooked. Front and center is what we view as Hess' evolution to a ‘pure play' E&P – but with a unique asset base given stability of the base and an advantaged cash position that underpins growth through the current downturn in oil prices. For all of this, the key question remains why with this portfolio, visibility and cash flow advantage, is the stock continuing to trade on one of the lowest multiples in the sector? In our view, delivering on its targets is enough to close the gap with peers. We believe just a 1x multiple move to the middle of the E&P pack is enough to lift Hess value by $20. Add buybacks, and we maintain Hess as a top tier opportunity in the large cap US oils.”
Hess Corp. closed on Thursday at $83.59.
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