UPDATE: ISI Group Upgrades Cobalt International Energy to Strong Buy on Attractive Valuation

In a report published Monday, ISI Group analyst Jon Wolff upgraded the rating on Cobalt International Energy CIE from Buy to Strong Buy.

In the report, ISI Group noted, “We are upgrading our rating on Cobalt International Energy (CIE) to Strong Buy from Buy due to an attractive valuation and our view of a favorable risk-reward in front of four high-impact sub-salt tests currently drilling as well as Shell's Yucatan well test (inboard lower tertiary in the DW GOM) which could extend the discovery size of Shenandoah (CIE, 20%) if it proves to be a shared reservoir. The Lontra prospect in Angola Block 20 is drilling ahead and is one of the largest potential test well in the world in 2013.”

Cobalt International Energy closed on Friday at $25.94.