Hess Shares Higher Following Goldman Upgrade, Addition To 'Conviction Buy' List

Hess Corp. HES has seen a significant jump in share price over the last 24 hours, bounding off a low on Tuesday around the $37.40 handle, up 3 percent on the day Wednesday.

This rebound follows an upgrade by Goldman Sachs from a previous Neutral rating to the current Buy rating.

Additionally, the stock may be experiencing positive movement based upon its inclusion to Goldman Sachs' "Conviction Buy" list, also announced in the upgrade note.

Goldman Sachs: Buy, Return Potential 52%

In the research note out Wednesday, Goldman Sachs reaffirmed its confidence in Hess, stating, "We upgrade HES to Buy from Neutral and add the shares to the Americas Conviction List. We see 52 percent total upside to our unchanged $59/share 12-month DCF-based target price."

Related Link: Select Oil, Gas Names Boosted By Goldman's Hess Call

The firm supported its thesis by highlighting the following catalysts:

• Upside Potential To Exploration: "The key unique catalysts for HES are exploration and appraisal wells in Guyanan […] and the Gulf of Mexico."
• Possible Consolidation: "We also believe success in Guyana could drive a greater likelihood of consolidation."