UPDATE: Bernstein Research Upgrades Statoil ASA to Outperform, Raises PT on Improved Outlook

In a report published Tuesday, Bernstein Research analyst Oswald Clint upgraded the rating on

from Market Perform to Outperform, and raised the price target from $23.00 to $26.50. In the report, Bernstein Research noted, “We upgrade Statoil to Outperform from Market-perform with a new 12 month price target of NOK 162 [US$26.50] (from NOK 133 [US$23.00]). Statoil has been one of our least favourite companies for the last few years based on our analysis of decline rates, real maintenance capex levels, and costs which we believed were only headed one way. However, we see enough evidence that the latter point may look different than we previously anticipated and maintenance capex will be less. Opex per boe has been stable for the last few quarters and we think capex will follow thereby improving optically weak FCF.” Statoil ASA closed on Monday at $22.50.