Analyst Chris Wheaton of Stifel Nicolaus maintained a Sell rating on Tullow Oil (TLW – Research Report), with a price target of p14.00.
Chris Wheaton has given his Sell rating due to a combination of factors primarily revolving around Tullow Oil’s financial challenges. The company’s recent sale of its Gabon assets, while adding liquidity, was at a lower value than anticipated, which negatively impacted the net asset value (NAV). This sale, though improving liquidity, does not significantly alleviate the company’s debt burden, which remains a major concern.
Additionally, the refinancing of Tullow’s debt is expected to come with high interest rates, potentially maintaining high cash interest costs and limiting capital available for reinvestment. These financial constraints, coupled with the reduced NAV and uncertainty in production forecasts, underpin Wheaton’s cautious outlook and the decision to maintain a Sell rating on Tullow Oil’s stock.
According to TipRanks, Wheaton is ranked #7628 out of 9407 analysts.