4th April 2014
Oil and gas explorer Tullow Oil has witnessed its shares surge following an upbeat report from UBS, which raised its recommendation on the FTSE 100-listed stock from ‘neutral’ to ‘buy’.
Following the publication of the positive revision, yesterday shares in Tullow Oil closed the session with a gain of more than 6%, on what was one of the highest volume trades of the year.
The business, which has exploration licences throughout Europe, South Asia and Africa has endured a share price fall of 34% over the past 12 months, taking it to five year lows but Thursday’s boost, means the stock is now up by 5% over the last week.
Notably brokers at both HSBC and Barclays have recently reiterated ‘overweight’ recommendations on the business while for its part Deutsche reaffirmed its ‘hold’ stance.
Bill McNamara technical analyst at Charles Stanley, a stock broking firm, believes the stock merits a closer look. He says: “. It is encouraging that it gapped higher at the open on Thursday and closed at the session high, implying that there should be scope for further gains in the short to medium term.”
By mid-morning trading on Friday, Tullow Oil shares are up by 1.88p, or 0.23% at 801.88p.