Simmons Raises Price Target on Hess Corp. (HES) to $64 Following 2Q Update

Simmons reiterated an Overweight rating on Hess Corp. (NYSE: HES), and raised the price target to $64.00 (from $59.00), following a 2Q update. Revised 2Q’16 EPS is relatively in-line with Street although the CFPS forecast is ~30% below consensus estimates.

Analyst Guy Baber commented, "HES remains an attractive long-term investment option in an oil price normalization scenario due to its strong balance sheet and liquidity position, significant oil leverage, and unique exposure to material exploration value. Yet while exploration value uniquely differentiates the HES investment thesis and could potentially redefine the longer-term growth profile in our view, our enthusiasm is somewhat tempered near-term by our below consensus cash flow forecast and a relatively challenged FCF outlook in a sub $65/bbl world. Despite these concerns, we remain Overweight with an upwardly revised $64 PT."

For an analyst ratings summary and ratings history on Hess Corp. click here. For more ratings news on Hess Corp. click here.

Shares of Hess Corp. closed at $56.07 yesterday.

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