LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg downgraded Gulf Keystone Petroleum from 'buy' to 'hold' on Tuesday, stating the group's current plans were already priced in.
Berenberg said it had chosen to lower Gulf Keystone following "a strong run" since late 2020, during which time the share price increased by over 150%.

The German bank pointed out the Gulf Keystone's Shaikan field in Kurdistan provided the firm with low-cost, cash-generative production and also highlighted that it has a differentiated, net cash balance sheet.

However, Berenberg feels that the value of Gulf's 55,000 barrel per day expansion was now reflected in the share price and stated that "more clarity" would be needed before credit can be given for follow-on development potential.

"Gulf Keystone retains an ambition to materially grow its production base beyond the near-term target of 55kbd. Confidence to begin reinvesting in the asset is a clear positive, confirmation of the FDP would provide clarity on the longer term," said the analysts, who also raised their target price on the stock from 180.0p to 190.0p.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE