This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Technical Observations – For
Technical Observations – Against
Shares recovering from downtrend since May highs. Oil prices strong, supported by supply constraints like Libyan sanctions. Shares jumped 5% on 31 Aug after brokerage Davy said Exxon Mobil’s latest offshore Guyana oil discovery had “special relevance” to
Risks to Tullow Oil shares include any big drop in oil price which would reduce the implied value of what it finds develops, produces and sells. Lower oil prices could come about from persistent global trade concerns, a recession or surprise jump in production. The company has not paid a dividend for four years.
Brokers/analysts are bullish on the shares with only 18% suggesting Sell. This is supported by 65% of broker price targets suggesting upside from current levels, to a consensus target of 253p, half-way between current levels and our target of almost revisiting May highs.
Next Event: Trading Update, 15 Nov
Latest Broker 12-Month Consensus: 36% Buy, 45% Hold, 18% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| Share | 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | 2.4 | 3.6 | -7.1 | 29.0 | 50.3 | 26.4 | 23.4 | -62.3 | -72.7 |
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Prepared by Michael van Dulken, Head of Research