Hess Corp. (HES) PT Raised to $173 at UBS

UBS analyst Josh Silverstein raised the price target on Hess Corp. (NYSE: HES) to $173.00 (from $163.00) while maintaining a Buy rating.

The analyst commented, "The arbitration process is underway, with an expectation for the process to go until late August-September. Ahead of decision, we refresh our views on Guyana valuation and update our "Where do you think HES trades on a standalone basis?" view. Following recent company meetings, we raise our Guyana valuation to reflect a stronger production outlook, supported by tiebacks and infill drilling, along with lower op costs. As a result, we see less downside risk at HES vs. our previous expectation, and raise our downside case valuation to $126/sh. This remains based on the disclosed 11+Bboe discoverable resource, suggesting even less downside should the resource be 15Bboe. Against our CVX PT, we see this resulting in a positive 3.4:1 risk/reward on HES and supporting our view as the more levered way to gain upside exposure to CVX."

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