Citi's Jeanine Wai upgraded Oasis Petroleum OAS from Neutral to Buy, increasing the price target from $12.00 to $13.00.
Now that Citi estimated WTI around $50.00/Bbl next year, Wai is comfortable with selecting names such as Oasis which are on significant leverage.
Additionally, the analyst noted Oasis' "above-average cash flow growth" which is expected to accelerate in the future. "The company has inventory of high quality drilled-but-uncompleted (DUC) wells that when utilized, dramatically increase near term capital efficiency" said Wai.
At the time of writing, Oasis was trading down 2.07 percent at $10.01.
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